“So many commentators are incorrectly assuming that the growth trends in our sites, clicks, and CPCs are primarily due to difficulties monetizing search on mobile,” he said in a call with investors. “That’s in fact not the case.”
Instead, he highlighted YouTube’s role in artificially depressing cost-per-click rates in recent quarters. He said those video ads are better measured by whether people choose not to skip them. Excluding YouTube ads, he said the cost-per-click across across Google’s properties would actually “be healthy and growing year-over-year.” Investors seemed convinced by his explanation, as the stock jumped 3% in after-hours trading despite the earnings miss.