Google's Q3 2012 ad revenue rose 19 percent to $11.5 billion. (Total revenues, including Motorola Mobility) were $14.1 billion.)
But the devil is in the details: Although Google's earnings release — which came out accidentally early today — shows it is still getting increased ad sales, it's making up in volume what it's losing in profit. The money it gets for each click is declining overall.
I've previously noted that this is due to Google's massive mobile ad business: Mobile platforms have added a vast new supply of cheap inventory, and when supply outstrips demand, prices fall.
Here's the big picture on Google's ad revenues:
Now look at what's happening to Google's ability to command prices. Growth in aggregate paid clicks is declining and the price per click is declining too:
Related:
Please follow Advertising on Twitter and Facebook.