Google's Cost Per Click For Ads Is Getting Cheaper, But That's Not A Bad Thing

One of the most interesting numbers in Google’s earnings Thursday was the decreasing cost-per-click (CPC) on ads.

CPCs are now down 11% year over year for Google, an indicator that advertisers aren’t paying as much for ads as they used to. But that’s not necessarily bad news because Google is serving a lot more ads than it did before. It’s now very cheap for businesses to advertise on Google, helping the dollars pour in. Remember: Google still makes most of its money from advertising.

Here’s a chart from Business Insider Intelligence that shows Google’s declining CPC growth.

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