Google Boosts Ad Volumes to Counter Mobile-Driven Price Drop
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As Google Inc. navigates a shift to mobile promotions from pricier search-based ads on desktops, it is relying on a simple maxim: volume, not just price.
The stock jumped a record 11 percent after Google yesterday posted third-quarter sales and profit that topped analysts’ estimates. While Google struggles with declining mobile premiums, it’s staving off a dent in revenue by selling more ads at a faster rate. The volume of clicks on advertisements climbed at the fastest pace this year, compensating for a drop in average-ad prices.