Google profits rises with increased spending on mobile

Google, on Thursday has reported that its profits has exceeded analysts’ estimates, despite of the fact that the average price of an ad it sells on websites and mobile phones continued to fall.

Google Inc., world’s leading search engine has managed to climb to a profit margin of $3.35 billion, i.e a total rise of 16% in profit, in the first quarter of the year.

The growth in its profits was primarily seen as the advertisers have increased spending on mobile promotions. The global search giant understanding the trend has stepped up to adapt this rapid changing technology environment where people are using Smartphone more often than PCs in order to access web. Google is continuously trying to enter these new ad-driven markets including smartphones, video and Web services. It has also recently announced to shut down its Affiliate network to focus on other services.

The company’s Android operating system is also one of the famous smartphone softwares in the world which has even leaped Apple’s IOS. According to a research by Gartner, Google’s operating system is now used on more than 70 percent of devices.

Google has also managed to improve its Cost per Click rate in the first quarter of 2013. The average price of cost per click (CPC) has decreased by a value of 4% Y-O-Y only, compared to 6% decline in the fourth quarter of FY’12. The company in February has announced that those who are using AdWords will soon be needed to pay more for ads on tablet devices if they want to advertise on PCs.

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