Google gains as ad industry gags

Google logoGoogle has reported revenues of $5.52 billion for the quarter ended June 30, 2009. According to CEO Eric Schmidt, 2Q year-over-year revenues registered a respectable increase of 3 percent despite the difficult economic climate.

"Google had a very good quarter, especially given the continued macro-economic downturn. While most of the world's largest economies shrank, Google's year-over-year revenues were up 3 percent," said CEO Eric Schmidt. "These results highlight the enduring strength of our business model and our responsible efforts to manage expenses in a way that puts us in a good position for the economic upturn, when it occurs. We remain focused on investing in technical innovation to drive growth in our core and new businesses."

Schmidt explained that Google-owned sites generated revenues of $3.65 billion - or 66 percent of total revenues - in the second quarter of 2009. This figure represents a 3 percent increase over second quarter 2008 revenues of $3.53 billion.

Other notable statistics include:
  • AdSense programs - Generated $1.68 billion, or 31 percent of total revenue.
  • International revenues (excluding the US) - reached an impressive $2.91 billion, representing 53 percent of total revenues.
  • Income from the United Kingdom - Totaled $715 million.
  • Aggregate paid clicks - Clicks related to ads served on Google sites and the sites of AdSense partners increased approximately 15 percent over the second quarter of 2008 and decreased 2 percent over the first quarter of 2009.
  • Average cost-per-click - Clicks related to ads served on Google sites and the sites of AdSense partners decreased approximately 13 percent over the second quarter of 2008 and increased 5 percent over the first quarter of 2009.
  • Traffic Acquisition Costs - The portion of revenues shared with Google's partners decreased to $1.45 billion in the second quarter of 2009, compared to TAC of $1.47 billion in the second quarter of 2008.
  • TAC as a percentage of advertising revenues - Fell slightly to 27 percent in the second quarter of 2009, compared to 28 percent in the second quarter of 2008.

Source: TG Daily

Tags: Google, Internet

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