October 13, 2011, 3:58 PM

Google paid clicks increase 28% year over year during Q3

But the cost per click decreased 5% from last quarter, Google says.

Allison Enright

Editor

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Google Inc. reported today that paid clicks during the third quarter ended Sept. 30 increased approximately 28% from the third quarter of 2010, and were up approximately 13% from the second quarter of 2011.

In reporting its financial performance today, Google said the average cost per click increased approximately 5% year over year and decreased approximately 5% from the second quarter of 2011.

Google reported revenue of $9.72 billion in the third quarter, up 33.3% from third quarter 2010 revenue of $7.29 billion. Net income rose 25.8% to $2.73 billion, up from $2.17 billion a year ago.

“We had a great quarter,” says Google CEO Larry Page. “Revenue was up 33% year on year and our quarterly revenue was just short of $10 billion.”

Google-owned sites accounted for $6.74 billion, or 69.3% of revenue in the third quarter, compared with $4.83 billion for the same period last year. That includes the paid search ads on the Google.com search engine placed through the Google AdWords program, a major marketing vehicle for online retailers. Ads Google places on others’ web sites through its AdSense program accounted for $2.60 billion, or 26.7% of total revenue during the quarter, up 18.2% year over year from $2.20 billion.

Revenue generated from outside of the United States totaled $5.30 billion, representing 54.5% of total revenue in the third quarter of 2011.

Page also noted that the search engine’s Google+ social network now has 40 million users, up from approximately 10 million three months ago. “People are flocking to Google+ at an incredible rate,” he says. Rival Facebook.com claims more than 800 million users worldwide.

Page also revealed new Google use metrics during the earnings call.

• The Google Chrome web browser has more than over 200 million users, up from approximately 160 million users at the close of last quarter.

• More than 190 million Android devices have been activated globally, up from 135 million three months ago. The new version of the Android operating system will be called Ice Cream Sandwich.

• Google’s mobile ad business has grown 250% in the last 12 months and is running at a rate to reach $2.5 billion.

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