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BizReport : : October 26, 2012

Google's disappointing Q3 earnings good news for advertisers

Almost $11 billion in revenue wasn't enough from Google to keep Wall Street happy, and shares have taken a bit of a tumble since Wednesday but, according to Wordstream's Larry Kim, a closer look at the data reveals some positives for both Google and advertisers.

by Helen Leggatt

larry kim photo.jpgWhen a company makes virtually all (94%) of its revenue from online advertising, an announcement that the average cost for ads has dropped doesn't appear to be good news.

However, Wordstream's comprehensive analysis of Google's data has put a different spin on the matter for both advertisers and the tech giant.

The good news for advertisers is obvious - they'll pay less to advertise. Wordstream's analysis shows that advertisers will be paying between 16% and 18% less than they did a few months ago.

But, isn't that bad news for Google? No, says Larry Kim, CEO and Founder of Wordstream.

"It's actually really good news for Google, too ... even though Wall Street cheers when the cost-per-click goes up and Google gets more money from advertisers ... that's not sustainable," he told VentureBeat. "By increasing the available impressions and clicks and lowering the costs, more advertisers will see more value from online advertising and that will be beneficial for Google in the long run."

Wordstream also revealed some mind-boggling stats from their research including:

- Google makes over $100 million per day via AdWords search and display advertising;

- Google search ads had 5.5 billion impressions per day in Q3;

- Google Display Network had 25.6 billion impressions per day in Q3;

- It would take you 178 years with no sleep to read through ALL the search ads Google serves up in a single day;

- More people click on Google Ads every day than the entire population of Brazil.

Tags: AdWords, earnings announcement, Google, search advertising, search engine

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