Google's Latest Ad Price Declines Are Because of YouTube, Not Mobile
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Another three months. Another quarter in which Google has increased its advertising revenue despite making less money per ad.
In the first quarter of 2015, the average amount of money Google makes from clicking on one of its ads declined 7% year-over-year. Meanwhile the number of clicks on Google’s ads increased by 13%, compared to last year. This trend has been going on since the fourth quarter of 2011.
The pricing-versus-supply trend is a problem the company has tried to fix. In the third quarter of 2013, Google migrated its advertisers to a new way of buying its basic search-and-display ads called Enhanced Campaigns, which prices mobile ad placements in relation to traditionally higher desktop rates in order to get advertisers to pay more for those smaller-screen slots.
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