Returning large advertisers gives Google a boost
Google's net profit grew 23 percent in the first quarter to 1.96 billion dollars, compared to 1.42 billion dollars in 2009. Net sales amounted to 5.1 billion dollars. Unlike other publishers, Google managed to rake more revenue in the advertising market. This is evident from the quarterly figures of the search engine giant
Google's net profit grew 23 percent in the first quarter to 1.96 billion dollars, compared to 1.42 billion dollars in 2009. Net sales amounted to 5.1 billion dollars. Unlike other publishers, Google managed to rake more revenue in the advertising market.
This is evident from the quarterly figures of the search engine giant.
According to CFO Patrick Pichette, the positive start of the new year was due to the return of large advertisers, compared to the previous year.
In the last three months, 66 percent of sales came from own sites. In the previous quarter this was still 67 percent. Other Google web sites, sites that use AdWords, accounted for 30 percent of revenue, equal to the share of the fourth quarter in 2009.
Thanks in part to the strategy to make a takeover per month, the costs rose at Google. But other projects were also responsible for this. Among other things hundreds of new employees and new forms of advertising were cost items for Google.
Regarding the new forms of advertising, Google added an AdWords advertising service option that "pursues" potential advertiser customers.
Google took over mobile visual search engine Plink for an unknown amount this month. Before that, it bought the photo editing program Picnik. The company also announced in mid-February that it would expand the stable with social network services by acquiring Aardvark, a social search engine. Earlier, the search engine giant experimented with Google Answers, but in 2006 the plug was pulled out. Google also bought reMail this year, this application was immediately removed from the App Store.
Google also announced that the Android Market is now bidding for 38, 000 applications, a growth of 8, 000 applications in March.
The Android phone from Google, the Nexus One, is a hopeful project for Google. It would even be profitable. Google does not explain exact figures here.
Photo source: Erwin Boogert (CC)