Retailers shift their ad spending from TV, radio and print ads to digital ads.
Average cost per click increased 4% over the second quarter of 2009.
For the second straight quarter Google Inc. today reported that total ad clicks, including on search results page ads and ads Google places on others’ web sites, rose 15% year over year. However, total clicks fell 3% in the second quarter compared to the first quarter.
Average cost per click, both on paid search ads placed through AdWords and ads placed through the AdSense network on non-Google sites, increased 4% over the second quarter of 2009, and 2% compared with Q1. For Marketing charts, click here.
Google reported $6.82 billion in revenue for the second quarter, up 23.8% compared with $5.51 billion in the same quarter last year. Net income was $1.84 billion, an increase of 24.3% from $1.48 billion a year ago.
Google-owned sites, including the Google.com search engine, generated $4.50 billion, or 66% of revenue. AdSense accounted for $2.06 billion, or 30% of total revenue in the second quarter. International revenue totaled $3.53 billion, or 51.8% of total revenue.
“We saw strength in every major product area, as more and more traditional brand advertisers embraced search advertising and as large advertisers increasingly ran integrated campaigns across search, display, and mobile,” says Eric Schmidt, CEO of Google. “We feel confident about our future, and plan to continue to invest aggressively in our core areas of strategic focus.”
Google's solid revenues are a sign that search marketing and display advertising remained healthy in the second quarter, says Colin Sebastian, a stock analyst who follows digital media and Internet companies at Lazard Capital Markets. He adds that Google ramped up its hiring and capital expenditures in the quarter, which is why earnings were a little bit short of expectations.