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Alphabet Tumbles After Earnings Miss, Traffic Acquisition Costs Rise
• zerohedge.com by Tyler DurdenTraffic acquisition costs are rising, up to 24% of Google's total advertising revenue from 22% at the same time last year. That's $6.5 billion in one quarter alone that Google sent to partners instead of its bottom line.
The amount Google charges for clicks on ads is falling. It was down around 14% from the same quarter last year, and down 6% from last quarter. This is a key metric for the company, which gets the vast majority of its revenue from ads.
Google is still growing in a serious way, with the number of money-making clicks up around 43% from the same time last year. But each individual click is making less money now.