How Google makes $100 million a day — and how GOOG lost $21 billion last week (infographic)

Originally posted on VentureBeat:

Last week Google stock crashed 10%, shedding about $21 billion in market value, when its earnings were prematurely released. Google revenue was up … but profit was down.

Now a new report from an independent source, internet marketing software company Wordstream, is giving us more information on how, exactly, that happened.

Essentially, even though total revenue rose to hit $14.1 billion, including $10.8 billion in advertising revenue, the amount advertisers pay for each click decreased significantly. Advertisers paid 16.5 percent less per click on Google search results compared to the previous quarter, and a whopping 18.2 percent less on Google’s display network (sites around the Internet that carry Google’s ads).


Looking for more data? 30 billion times a day, Google runs an ad (13 million times, it works)


In addition, click-through rates on Google search result pages dipped 12.4 percent on Google’s high-value search pages.

The upshot…

View original 95 more words

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