Google’s revenue has risen by 36% recently when it’s average ads price becoming lower and lower compare to its competitors. Google’s stock surged by more than six per cent after this result released. Google Inc. earned about $3 billion US at the end of September, which is much higher than the same time last year, $2.2 billion income.

Advertisers are not willing to pay so much for mobile ads, because the screens are smaller than on laptop and desktop computer. However, as more and more people use mobile devices to connect to internet, it’s making the average ads price going down.

But why Google can earn more when the price is going down? Google is facing a large opportunity that is there are more customers. More people will see the ads on its website and this increasing the frequency that people click on the commercial pitches.

Google’s target market is increasing by the technology increase during these years. Although the average price for per click on ads is decreasing, Google still is increasing its revenue because of the increasing customers. The improving of technology brings more opportunities for the companies and which company can catch it, then who will earn more many fist.

resource: Google earnings up 36% despite cheaper ad prices. The Associated Press. CBCNEWS.

http://www.cbc.ca/news/business/google-earnings-up-36-despite-cheaper-ad-prices-1.2101730