Business
Google Inc's revenue grew 15 percent in the fourth quarter but fell short of Wall Street's target on declining online ad prices and unfavorable foreign exchange rates, reports Reuters. Shares of Google edged up 0.1 percent to $510.66 in extended trading after an initial dip on the news.
Google's advertising revenue has come under pressure as more consumers access its online services on mobile devices such as smartphones and tablets, where ad rates are typically lower.
The growing popularity of mobile devices has made No. 1 social network Facebook Inc a greater threat in the battle for advertisers. Facebook reported on Wednesday that mobile ads on its network doubled year-over-year during the fourth quarter.
The cost-per-click - or the amount Google can charge advertisers for placing ads on its network - decreased by 3% over the quarter, the BBC reports, indicating that Google is still having difficulty raising the price it charges for mobile ads.
The metric is closely watched by investors, who worry that the firm's mobile ad business is not as strong as its desktop search business - which is troubling, given that consumers are increasingly switching to accessing the internet on their smartphones and mobile devices.
