Google’s Paid Clicks Up 31%

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Google parent company Alphabet has just released its fourth-quarter earnings.

Important numbers:

  • Cost per click (how much Google can charge for its ads) was down 13% year-over-year (analysts expected them to be down 6.1% year-over year). Google has said for the last several quarters that CPC is being driven down not by the shift to mobile — like analysts have often said — but by the growth of YouTube’s TruView ads, which it still can’t charge as much for.
  • Paid clicks (how many times people click those ads) were up 31% (analysts expected them to be up 22.4% year-over-year).
  • Google’s Other Revenue, which includes its Google Play app store and cloud business, were $2.1 billion, up 24% year-over-year.
  • Google websites revenue was $14.9 billion, up 20% year-over-year, while Google’s networks revenue was $4.14 billion, up 7% year-over-year.

YouTube falls within websites revenue, and in the earnings call CFO Ruth Porat attributed YouTube, mobile search, and programmatic as being the big drivers of its revenue growth, with mobile the biggest driver overall.

Google CEO Sundar Pichai says that this quarter Gmail joined the list of Google products with over 1 billion users. Others with over a billion users are Search, Android, Maps, Chrome, YouTube, and Google Play.

Pichai also highlighted two of Google’s main goals: to bring its technical strengths to all of its products and to make sure it’s solving big problems.

He also gave an update on YouTube, saying that people watch “hundreds of millions of hours” on it every day. Facebook just announced in its earnings that people watch 100 million hours every day.

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