Google is still highly dependent on its ad business
Despite Google's attempts at diversification, advertising is still the company's main bread and butter and accounts for most of its icome. In Q3, 91 percent of Google's revenue, excluding Motorola, came from advertising.That may seem like a large figure, but it is actually shrinking. Google's "other" revenues, i.e. mostly from Google Apps, were $1.23 billion (€900 million), nine percent of the total of $13.77 billion (€10.08 billion) Google segment revenue.
Ads on Google sites accounted for 68 percent of Google segment revenue, adding up to $9.39 billion (€6.97 billion). Meanwhile, the Google ad network raked in $3.15 billion (€2.31 billion), 23 percent of revenue.
Paid clicks, i.e. the number of times people clicked or tapped on ads, increased 26 percent in the last quarter, year over year, and eight percent from the quarter before it.
However, cost-per-click, how much Google gets for those clicks, was down eight percent year over year. This metric has been worrying analysts for a while now and things don't seem to be getting better. In large part, the decrease is due to the transition to mobile devices, which still pay less than desktop ads.