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Alphabet (GOOGL) Q3 Earnings: Ad Clicks Grow By 33%

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On Thursday, Alphabet Inc. (GOOGL - Free Report) reported its third quarter fiscal 2016 earnings results, beating estimates for both the top and bottom lines. The most anticipated stats analysts look for in Alphabet’s earnings release revolve around advertising, as it still accounts for roughly 90% of their revenue.

Aggregate paid clicks, or ad clicks, grew 33% year-over-year and coming in above its second quartered ad click increase of 29%. This marks the fifth consecutive quarter of ad click growth above 22%; executives at Google have said in the past the mobile has fueled this surge.

Paid clicks on Google websites grew 42% year-over-year, and the aggregate cost-per-click decreased 11% year-over-year. This is a steeper decline in cost-per-click than Alphabet’s previous two quarters in fiscal 2016. This is a direct effect of the shift from desktop computers to mobile devices. Investors should note that mobile ads, in general, are cheaper than desktop ads, so, as mobile ads have increased, the average amount advertisers pay Google after a user clicks on an ad has dropped.

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