Google's core business is slowing down
Google's total advertising revenue was $15.5 billion last quarter, up 11% from the same period of last year, it said in its earnings Thursday. The number of clicks on ads ("paid clicks") was also up 13% year-over-year.
But it's not all good news for Google, whose advertising revenue accounts for nearly 90% of its total sales.
According to BI Intelligence, Google's ad sales growth has been on a steady decline over the last few years. Just 3 years ago, it was growing more than 20%, but by last year, the growth dipped to around 15%.
Google's cost per click (CPC), or how much it can charge its ads, has also dropped by another 7% last quarter, which hints the company could possibly be having trouble with its most important business.
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