Google’s third-quarter results may have proven that a deepening decline in the Internet search leader’s average ad prices matters less than how frequently people are clicking on the commercial pitches.
The numbers released Thursday impressed investors who had been fretting about a downturn in Google’s ad prices that began two years ago. Those concerns evaporated, at least temporarily, with a third-quarter performance that exceeded the analyst projections steering Wall Street.
Google’s ad prices are still sagging as marketers pay less for commercial pitches on mobile devices, but the number of revenue-generating clicks on those ads is rising at a much faster clip.
The equation resulted in a 36 percent increase in Google’s earnings for the three months ending in September.
Google’s stock surged 8 percent to $959 in extended trading after the report came out. That leaves it poised to reach an all-time high in Friday’s regular trading session.
