Google parent Alphabet Inc. is paying more to partners that distribute its search engine, while charging less for each ad that it runs – a combination that’s putting a damper on growth. / Third-quarter sales, minus partner fees, were $27.2 billion, the internet giant said on Thursday in a statement. Analysts on average were expecting $27.3 billion, according to data compiled by Bloomberg. Sales from Google’s own properties, including YouTube and search pages, rose 22 percent, slower than the 26 percent growth in the prior quarter. The company’s shares slid in extended trading. Google is shelling out billions of dollars a year to partners including Apple Inc. to distribute its search engine widely. Then it’s up to Google to generate as much money as possible when people search and click on relevant ads. More of these marketing spots are running on mobile and YouTube, which can’t charge as much as the company’s original desktop search business because they result in fewer eventual consumer purchases. The number of clicks on Google ads jumped more than 60 percent in the quarter, but prices dropped 28 percent. That’s the biggest decline since at least early 2015, according to data compiled by Bloomberg.
Google parent Alphabet misses revenue estimates as ad prices decline
