Google CC touches on ad prices, PLAs, Fiber, offshore cash


Focus on Google's (NASDAQ:GOOG) Y/Y cost per click (NYSE:CPC) figures rather than "noisy" Q/Q figures, says departing sales chief Nikesh Arora on the CC. The Y/Y numbers show moderating declines (-6% in Q2, -9% in Q1), as Google takes steps to boost mobile ad prices and grow demand for product listing ads (PLAs).

Arora also states Google has initiatives afoot to improve CPCs in international/emerging markets, where they tend to be well below U.S. levels (Facebook can relate). Demographics/income levels are responsible for part of the gap.

Other CC remarks: 1) Google is working with 34 cities on Fiber requirements, and has achieved major cost reductions. More Fiber announcements will arrive later in 2014. 2) PLAs are driving 3x as much traffic as a year ago. 3) ~60% of Google's cash ($61.2B at the end of Q2) is offshore. 4) Google still thinks mobile ad CPCs will eventually exceed PC CPCs, thanks to their ability to use location data and drive local/offline commerce.

CC live blogs: I, II

GOOG +1.2% AH. Q1 results, details.

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