July 17, 2014, 5:04 PM

Google’s paid clicks grow year over year by 26% in Q2

However, they were up 2% from Q1 2014, the search engine giant reports today. Its revenue was up 22% in the quarter, to $15.96 billion from $13.12 billion in the same period last year.

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Google Inc. grew its paid clicks on ads across its sites and those in its advertising network by 26% year over year in the second quarter of 2014, ended June 30, the search engine giant announced this afternoon. Compared to the first quarter of 2014, clicks were up by 2%, it says.

Across all formats, Google reports that the average cost per click decreased 6% year over year in the quarter, but stayed flat with Q1 2014. Total revenue was up by 22% in Q2 2014, to $15.96 billion from $13.12 billion in Q2 2013.

In tandem with its Q2 earnings, Google also announced chief business officer Nikesh Arora, who has been with the company for almost 10 years, is leaving to become the vice chairman of SoftBank Corp. and CEO of SoftBank Internet and Media. SoftBank is a Japanese telecommunications and Internet company whose e-commerce investments include stakes in U.S. web-only retailers Gilt Group Inc., No. 59 in the Internet Retailer 2014 Top 500, and NatureBox, No. 470, as well as in Chinese e-commerce giant Alibaba Group Holding Ltd. Omid Kordestani, who has led the sales team, will take his place on an interim basis.

For the second quarter, Google also reports:

  • Net income of $3.42 billion, up 5.9% from $3.23 billion in Q2 2013.
  • Google-owned sites, such as Google.com and YouTube, contributed $10.94 billion, or approximately 69.0% of revenue. That’s up 23.0% from $8.87 billion in the same period a year ago.
  • A 7.0% year-over-year increase in Google network revenue, to approximately $3.42 billion from $3.19 billion the same period a year earlier. This is revenue Google receives from clicks on ads it places on the web sites of other companies, including retailers’ sites.
  • Google’s traffic acquisition costs—that is, the amount Google pays to web sites that host Google ads—increased to $3.29 billion, up 9.3% year over year from $3.01 billion in Q2 2013.
  • International revenue for Google segments, including from Google sites, networks and other activities like hardware sales, of $9.33 billion, representing 58% of Google’s total revenue in the quarter, compared with 55% in Q5 2013. The United Kingdom accounted for 10% ($1.62 billion) of total revenue, equal to Q2 2013.
  • For the six months ended June 30, Google reported $31.38 billion in total revenue, up 20.4% from the first half of 2013 when Google reported $26.06 billion in total revenue. For the first quarter of 2014, Google reported revenue of $15.42 billion, up 19% from the first quarter of 2013.
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