Google’s ads revenue fell by 13%

Following the Google’s second-quarter earnings report, released July 16, investors deduced an inference that online advertising market is to stay in depression. Thus, the report revealed a big 13% decline during the period that ended June 30in so-called revenue per click, a measure of the value placed by marketers on ads shown by Google, that overshadowed other results, including sales that bested Wall Street's expectations by better-than-expected earnings, showing Google is keeping costs under control.The income fall reflects that Web users are clicking on ads to comparison-shop without buying products, and buying lower-cost items online compared with a year ago, meaning ads to be less valuable to marketers, that resulted lower payments to Google. Google’s revenue slightly beat Wall Street analysts' anticipations, increasing by 3%, to $5.52 billion. After subtracting payments Google made to other Web sites that host its ads, revenue was $4.07 billion, against experts’ consensus estimate of $4.06 billion. Net income was $1.48 billion, up 19% from $1.25 billion a year ago. Google earned $4.66 per share, or $5.36 after removing the cost of stock compensation for employees. Wall Street had expected earnings of $5.09. Google stocks lost 3.4% in extended trading after closing July 16 up 4.43, or 1%, at 442.60.So, investors are to be watching the results of other Internet companies to see whether the online ad market can pull out of the plunge that's left search marketing spending 20% lower in each of the first two quarters of 2009.