Google’s Ad Revenue Hits $19 Billion, Even as Mobile Continues to Pose Challenges

Up 19 percent since last year

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Google is still the primary moneymaker for parent company Alphabet.

During the second quarter of 2016, Alphabet's revenue hit $21.5 billion, a 21 percent year-over-year increase. Of that revenue, $19.1 billion came from Google's advertising business, up from $16 billion a year ago.

Even as consumers shift toward mobile, Google has struggled to make more money from smartphone-size ads that are typically priced less than desktop ads. During Thursday's earnings call, Google said cost per click was down 7 percent from last year. Meanwhile, aggregate clicks on paid ads increased 29 percent from the second quarter of 2015. And Google saw a 37 percent year-over-year jump in paid clicks on its websites.

Outside of Google, Alphabet breaks down its other projects and smaller revenue streams into a category called "other bets," which includes self-driving cars and its smart home gadget, Nest. Those projects brought in $185 million for the company during the second quarter, up from $74 million in the second quarter of 2015.

Alphabet's results come on the heels of its competitor's, Facebook, which continues to grow both its user base and revenue. On Wednesday, Facebook reported ad sales of $6.2 billion, a 59 percent yearly increase.

@laurenjohnson Lauren Johnson is a senior technology editor for Adweek, where she specializes in covering mobile, social platforms and emerging tech.