Google earns money by clicking on ads, says chief executive
Google is the first company to declare profits from its “clickbank” model, the strategy of placing ads on websites and then charging users for them.
“I think this is an excellent opportunity for us to show that we are not just about advertising,” said Craig Barratt, the head of Google’s news division.
The company said it had seen an average of $20.6 million per click in the first quarter, compared with $18.2 million in the second quarter.
It said it would also be publishing a more detailed breakdown of how much each click generated.
A separate report from technology research firm Gartner said that Google was now the world’s most popular ad network, with a total audience of 1.8 billion.
Google’s profit for the first three months of the year was $1.08 billion, a decline of more than 20% from the previous year.
The number of clicks on Google ads is growing as the internet grows faster and more people search online for information.
The search giant reported a revenue of $7.9 billion in the most recent quarter, up nearly 20% on a year ago.
Its operating profit was $2.8bn.
Mr Barratt also said that it was the first time Google had paid its employees.
The Google chief said he would not be commenting on any potential future changes to the company’s compensation plan.
Google is one of a number of tech companies that are trying to tap into an emerging market for revenue generated by ads.
Facebook said in September that it had struck deals with a number to build ads on its website, as well as a payment system called Shopify.
But Google said that the payments were “not as attractive as we had hoped”, because they were tied to clicks.
“We expect this model to continue to evolve,” Mr Barrat said.