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"Google reported revenues of $1.919 billion for the quarter ended December 31, 2005, an increase of 86% compared to the fourth quarter of 2004 and an increase of 22% compared to the third quarter of 2005.
Google reports its revenues, consistent with GAAP, on a gross basis without deducting traffic acquisition costs, or TAC. In the fourth quarter, TAC totaled $629 million, or 33% percent of advertising revenues."
86% increase is a quite significant one. How is it that their TAC is only 33%? Is it going up or down?
I do believe they will be dominent for some time but the problem with being top of the heap is those playing catch up wait for a mistake and pounce ,
And with Microsoft one of those who are in the race as they say anything can happen