GOOG Earnings: Google 3Q Profit
GOOG Earnings: Google 3Q Profit – Google posted a 32% increase in profit and a 23% increase in revenue, mostly from their search ad sales, providing evidence that the online advertising market is rebounding. The results show how Google, among a number of other companies whose business remains online, are able to benefit from increased online ad spending. They reached a record $12.1 billion in the first half of the year. It shows that many companies are finding online ads to be a cost effective way to promote their business.
Paid clicks, a service that measures how frequently users click on ads, showed that the number rose 16% in September when compared to the previous year. Meanwhile, the average price that was spent per click rose 3% from the previous year as a result of increased competition.
Search ads remain the bread and butter of the company. Investors had previously been concerned that Google’s growth as a company would slow down, but this new news shows that the company was only being held back by a slowed economy and will continue to grow.
Jonathan Rosenberg, a Google senior vice president, said that the company was currently on pace to create more than $2.5 billion in revenue each year. That money also includes advertising programs that allow people to place Google advertisements on their own sites. It will be interesting see how the company continues to grow as the economy recovers. Certainly, if one thing is clear from their increasing revenue, it’s that more businesses are turning online to promote themselves than ever before.