Google Inc’s revenue increased 21 percent as strength in its Internet advertising business offset a persisting drop in ad rates, stirring hopes among investors the Web search leader is close to slowing that decline.

Advertising rates, or costs per click, have headed south as users gravitate to smartphones and tablets, where Google can generally charge less than on desktop computers.  Google said revenue for its existing Internet business totaled $10.96 billion in the quarter, up from $9 billion a year earlier. But the cost per click for online search ads continued to decline in the second quarter, falling 16 percent year-on-year.  The overall number of clicks on ads, however, increased a robust 42 percent. And some analysts highlighted a quarter-on-quarter 1 percent gain in the second quarter’s CPCs.

Source:  Yahoo Finance