April 16, 2010, 12:00 AM

Clicks on Google ads went up 15% in Q1, while cost per click rose 7%

The leading search engine reported 23% year-over-year revenue growth. Total clicks, including on search results page ads and ads Google places on others’ web sites, increased 15% over Q1 2009 and 5% over the fourth quarter of last year.

Internet Retailer


More clicks on Google ads in the first quarter led to higher pay-per-click prices on the ads Google Inc. placed on Google search results pages and on the sites of publishers that participate in the search giant’s AdSense advertising network.

Google reported yesterday that total clicks on the ads it placed increased 15% over the first quarter of 2009 and 5% over the fourth quarter of last year.

Average cost per click, both on paid search ads placed through AdWords and ads placed through the AdSense network, increased 7% over the first quarter of 2009, but decreased 4% compared with Q4. Advertisers typically bid up prices during the holiday season when conversion rises.

Google reported $6.77 billion in revenue for the first quarter, up 23% compared with $5.51 billion in the same quarter last year. Net income was $1.96 billion, an increase of 38% from $1.42 billion a year ago.

Google-owned sites, including the Google.com search engine, generated $4.44 billion, or 66% of revenue. AdSense accounted for $2.04, or 30% of total revenue in the first quarter. International revenue totaled $3.58 billion, or 53% of total revenue, unchanged from 53% of revenue in the fourth quarter and up slightly from 52% in Q1 of 2009.

“Google performed very well in the first quarter, with 23% year-over-year revenue growth driven by strength across all major verticals and geographies,” says Google chief financial officer Patrick Pichette. “Going forward, we remain committed to heavy investment in innovation-both to spur future growth in our core and emerging businesses as well as to help build the future of the open web.”

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