Digital Access

Digital Access
Access nwherald.com from all your digital devices and receive breaking news and updates from around the area.

Home Delivery

Home Delivery
Local news, prep sports, Chicago sports, local and regional entertainment, business, home and lifestyle, food, classified and more! News you use every day! Daily, weekend and Sunday packages.

Text Alerts

Text Alerts
Stay connected to us wherever you are! Get breaking news updates along with other area information sent to you as a text message to your wireless device.

Email Newsletters

Email Newsletters
We'll deliver news & updates to your inbox. Plan your weekend and catch up on the news with our newsletters.
State and Nation Business

Google stumbles in 2Q as slump in ad rates deepens

SAN FRANCISCO – Google's financial performance faltered in the second quarter as a downturn in the Internet search leader's ad prices deepened.

The results announced Thursday show Google is still having trouble navigating a technological transition driving more online activity on to smartphones and tablets. Those devices pose a challenge because their smaller screen sizes fetch lower ad rates than on traditional desktop and laptop computers.

Google's stock fell more than 5 percent in extended trading.

Google Inc.'s average ad rate fell by 6 percent from the same time last year during the three months ending in June. It marks the seventh consecutive quarter of falling ad prices.

Google earned $3.2 billion, or $9.54 per share, up 16 percent from $2.8 billion, or $8.42 per share, a year earlier.

Revenue rose 19 percent to $14.1 billion.

Despite the lower ad rates, Google CEO Larry Page focused on the increased revenue and the potential from mobile ads.

"The shift from one screen to multiple screens and mobility creates tremendous opportunity for Google," he said in a statement. "With more devices, more information, and more activity online than ever, the potential to improve people's lives even more is immense."

Loading more