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Google Ads Keep Getting Cheaper, and Larry Page Wants More Moonshots

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PagePhotograph by David Paul Morris/Bloomberg

Google’s latest quarter beat analysts’ expectations for revenue and profit, following the company’s dull path of grinding profitability. Here are three things we learned:

Google is selling more ads and getting less for them. Google clocked 12 percent more revenue in the third quarter, compared to the same quarter the year before, and people clicked on Google ads 26 percent more frequently than they did a year ago. But the money that Google gets for each of those clicks dropped 8 percent. This is what happens as people shift to mobile ads, which draw lower rates, says Bloomberg Industries analyst Paul Sweeney. “Everyone is dealing with the same thing. Luckily for Google, they see a lot of demand,” he says.