Mobile adverts help Google beat sales estimates

Google reported sales that topped estimates during the third quarter as advertisers boosted spending on mobile and video promotions.

Revenues were $14.89bn (€10.88bn), or €11.92bn excluding sales passed on to partner sites, the company said last night. Bloomberg analysts had predicted $11.64bn in revenue.

“Google had another strong quarter with $14.9bn in revenue and great product progress,” chief executive Larry Page said in a statement.

“We are closing in on our goal of a beautiful, simple, and intuitive experience regardless of your device.”

As Google expands beyond delivering ads alongside search results, it is benefiting from demand for promotions that reach users via smartphone apps, online news clips, or browsing on tablets.

The company should take 33% of the global online advertising market this year, up from 31% last year, according to eMarketer.

“Google has a lot of things going for it,” said analyst Sameet Sinha of B Riley & Co. “Google has its fingers in every pie.”

Profit excluding certain items was $10.74 a share, topping analysts’ average projection of $10.36. Net income rose 36% to $2.97bn from last year.

Google climbed more than 6% in extended trading. The shares declined 1% to $888.79 at the close in New York, leaving them up 26% this year.

The total number of paid clicks jumped 26%, even as the company reported an 8% decline in average cost per click, a measure of advertising rates.

Google is working to address falling prices. The company has introduced an advertising service called “enhanced campaigns”, encouraging marketers to funnel more of their spending onto wireless devices with new management tools.

The company is making other changes. Earlier this month, Google said it would update its marketing rules to allow users’ names and photos to be used in more promotions. Google is also considering developing a tool that would make it easier for companies to tailor online advertisements without using cookies, which track browsing habits.

Google is pushing for better results in other areas, including in hardware. Its Motorola Mobility unit, which the company bought last year in its biggest acquisition ever, announced a flagship Moto X smartphone in August, a bid to boost sagging market share.