Google Q1 Earnings Up As Ongoing Shift to Enhanced Campaigns Reaches Full Transition

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Google reported nearly $3.35 billion in net income on $13.97 billion in revenue, during the first quarter of the year. Excluding the Motorola Mobility business, which accounted for $1 billion in revenue, Google’s revenue from advertising and its other businesses grew almost 18 percent from the previous quarter and 20 percent year-over-year.

Paid clicks rose just 3 percent from the previous quarter, but jumped a steady 20 percent from the year prior. Average cost-per-click rates declined 4 percent on an annual and quarterly basis. Meanwhile, traffic acquisitions costs climbed 15 percent from the first quarter of 2012 to $2.96 billion but as a percentage of advertising revenues the cost remained flat from the year prior at 25 percent.

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