Google Inc (NASDAQ:GOOG)’s second quarter earnings report came up short of expectations, but analysts aren’t too worried about it. Shares of the search giant’s stock fell after the weak results came out, but analysts at UBS and Jefferies still have a Buy rating on the stock.

Google’s results broken down

For the second quarter of the year, Google Inc (NASDAQ:GOOG) reported consolidated net revenues of $11.1 billion and 15% revenue growth year over year. Gross revenue from Google Inc (NASDAQ:GOOG) Sites was $8.9 billion with an 18% growth rate year over year. Network gross revenue was reported to be $3.2 billion with a 7% growth rate. Earnings per share were $9.56.

Google

Paid clicks surged 23% year over year, compared to the 20% increase in the first quarter. Cost per clicks were considered to be the main problem area in Google Inc (NASDAQ:GOOG)’s results. They fell 6% year over year, compared to the 4% decline in the previous quarter. Licensing and other revenue rose 138% year over year. Motorola’s gross revenue was $998 million.

Google’s paid click growth indicates a healthy ecosystem

The U.S. Internet Team from Jefferies issued a report to investors after the results were announced. They believe that changes in Google Inc (NASDAQ:GOOG)’s ad policies are the culprit in terms of the decline in cost per click. However, they see growth in paid clicks as being “a better indicator of a healthy ad ecosystem.” They note that a larger percentage of Google Inc (NASDAQ:GOOG) ads are now monetized on a non-cost per click basis.

Google Inc (NASDAQ:GOOG) has been rolling out its Enhanced Campaigns ad platform over the last month or so, and analysts have said in the past that they viewed the platform as being a long term positive for the search giant. JPMorgan analysts said last month that they think Enhanced Campaigns will push cost per clicks higher for Google Inc (NASDAQ:GOOG), while analysts from Bank of America Merrill Lynch predicted a 1 to 2% boost in revenue from the platform.  Recently Citi analysts and Wedbush analysts also noted expected increases in cost per click from Enhanced Campaigns.

Unfortunately we will have to wait until Google Inc (NASDAQ:GOOG)’s third quarter results to see if all of these analysts are right. If they are, then the company’s cost per click problem may have already been solved.