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Google Posts Earnings - Up 3% year over year.

     

Brett_Tabke

8:30 pm on Jul 16, 2009 (gmt 0)

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“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%. 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,” said Eric Schmidt, CEO of Google. “We remain focused on investing in technical innovation to drive growth in our core and new businesses.”

webastronaut

8:37 pm on Jul 16, 2009 (gmt 0)

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The last that I heard about this was based on data from many months ago.

Brett_Tabke

8:38 pm on Jul 16, 2009 (gmt 0)

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WHEW! Appears as Search Advertising has finally stabilized. I think we just found the bottom!

Net Revenue: $4.07 billion vs. $4.05 billion
Adj. Operating Income: $2.2 billion vs. $2.1 billion
Adj. EPS: $5.35 vs. $5.05
Paid clicks up 15%
Free Cash Flow: $1.5 billion

Brett_Tabke

8:50 pm on Jul 16, 2009 (gmt 0)

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I am just surprised it is not DOWN.

maximillianos

8:55 pm on Jul 16, 2009 (gmt 0)

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Good news indeed.

avalon37

9:21 pm on Jul 16, 2009 (gmt 0)

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That's not surprising, or hard to accomplish, when you mess with QS which in turns raises CPC prices dramatically. And expand expanded broad match even further.

fargo1999

10:18 pm on Jul 16, 2009 (gmt 0)



Hm, but if revenue is up 3% and inflation is 6% then there is a loss...

frontpage

10:47 pm on Jul 16, 2009 (gmt 0)

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They conveniently ignored the bad news in the cheerleading. More people are clicking on its Ad Words than a year ago, but advertisers are paying less per click.

Paid Clicks - Aggregate paid clicks, which include clicks related to ads served on Google sites and the sites of our AdSense partners, increased approximately 15% over the second quarter of 2008 and decreased approximately 2% over the first quarter of 2009.

The situation was turned on its head for Google’s average cost-per-click metric, which includes Google ads serviced on other sites by AdSense partners. Advertisers paid 13% less per click than during the year-ago period, but 5% more over the first quarter of 2009.

A recent Credit Suisse report speculated the company is losing up to $US500 million a year on YouTube between hosting costs, and having to buy in commercial content for advertisers wary of their messages appearing around community content.

skibum

11:15 pm on Jul 16, 2009 (gmt 0)

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Net Revenue: $4.07 billion vs. $4.05 billion
Adj. Operating Income: $2.2 billion vs. $2.1 billion
Adj. EPS: $5.35 vs. $5.05
Paid clicks up 15%
Free Cash Flow: $1.5 billion

All good top line numbers but:

Rev up 3%, paid clicks up 15% = lower cost per click.

Other metrics that would be nice to see in the mix:

Growth of search query volume

Is search query volume up more than 15%? If so, the CTR may be down assuming increase in ads served is equal to increase in search volume.

Take away search query growth and results likely go down YoY.

Regardless, Google is in an excellent place.

weeks

11:44 pm on Jul 16, 2009 (gmt 0)

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Hm, but if revenue is up 3% and inflation is 6% then there is a loss...

We had a blip in inflation, but...
[forecasts.org...]

Digmen1

12:28 am on Jul 17, 2009 (gmt 0)

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If their profit is 1.5 billion then YouTube is taking a third of that (see above). That must be annoying to them.

But overall it is good news for us all as it shows that the bottom has not fallen out of internet advertising and even a small increase in today's climate must be a good sign.

shorebreak

12:49 am on Jul 17, 2009 (gmt 0)

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Things I found interesting from listening to their earnings call:

1) When asked whether Google's seeing improvement in RPM, they said that most every other aspect of search behavior has improved *besides* RPM. I took that to mean that improvements that will eventually yield monetization improvements are well under way.

2) When asked about revenue impact of their changed trademark policy, they declined to answer the question.

3) QS: they referred to over a dozen ad quality improvements that had a 'higher impact than usual'.

4) Smaller advertisers' spend hasn't yet recovered, larger one have stabilized.

5) As usual, there was an air of supremacy so thick you could cut it with a knife...

fargo1999

2:18 am on Jul 17, 2009 (gmt 0)



"We had a blip in inflation, but..."

Well, it's all stats manipulation (same applies to unemployment numbers) and it would be best to compare what $1 could buy today versus a year ago.

ken_b

2:26 am on Jul 17, 2009 (gmt 0)

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Aren't numbers fun?

Todorovic

8:11 am on Jul 17, 2009 (gmt 0)

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Statistic is nice tool, but we will see, how will this growth reflect to us...

poster_boy

6:37 am on Jul 17, 2009 (gmt 0)

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System: The following message was spliced on to this thread from: http://www.webmasterworld.com/goog/3954200.htm [webmasterworld.com] by engine - 9:23 am on July 17, 2009 (utc +1)


The online ad market will remain in the doldrums, investors concluded after Google (GOOG) reported second-quarter earnings.

Results released July 16 showed a big drop in so-called revenue per click, a measure of the value placed by marketers on ads shown by Google, and more generally a barometer of the health of online advertising. The average amount paid by advertisers when a Web user clicks on an ad placed by Google dropped 13% in the period that ended June 30. The decline in revenue per click overshadowed other results, including sales that bested Wall Street's expectations by a hair and better-than-expected earnings that showed Google is keeping costs under control.

Shares of Google fell 3.4% in extended trading after closing July 16 up 4.43, or 1%, at 442.60. "The downturn is finally getting to Google," says Jeffrey Lindsay, a senior analyst at Sanford C. Bernstein who has an outperform rating on Google's stock. The drop in revenue per click shows that Web users are clicking on ads to comparison-shop without buying products, and buying lower-cost items online compared with a year ago, Lindsay says. Those behaviors mean ads are less valuable to marketers, and result in lower payments to Google.

Business Week [businessweek.com]

graeme_p

10:38 am on Jul 17, 2009 (gmt 0)

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Also note that Google is paying less to Adsense publishers:

The majority of TAC is related to amounts ultimately paid to our AdSense partners, which totaled $1.24 billion in the second quarter of 2009

Whereas in the same quarter last year it was $1.32 billion

koan

11:05 am on Jul 17, 2009 (gmt 0)

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Whereas in the same quarter last year it was $1.32 billion

Which is a 6% drop, less than the 13% drop in the average CPC.

robzilla

11:29 am on Jul 17, 2009 (gmt 0)

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You're welcome, Google ;-)

JS_Harris

12:53 pm on Jul 17, 2009 (gmt 0)

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The internet bounces back from recession faster than brick and mortar shops do, it's official.

What on earth is going on in California though, the government wants to legalize and sell pot to pay off their debt? The economy isn't solid anywhere yet but lets hope this is indeed bottom, desperation is u g l y!

Shaddows

1:31 pm on Jul 17, 2009 (gmt 0)

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Whereas in the same quarter last year it was $1.32 billion

Which is a 6% drop, less than the 13% drop in the average CPC.

But the wrong direction given revenue is up. CPC may be down, but click volume must be up.

In fact, with revenue up 3% and share down 6%, the rate of sharing is down just under 9%.

loudspeaker

6:52 pm on Jul 17, 2009 (gmt 0)

5+ Year Member



Note:

* Revenue from AdSense partners *increased* 2% over Q2-2008
* Payments to AdSense partners *decreased* from Q2-2008

So, having achieved its market position, Google is basically starting to milk AdSense partners for all they've got? That can't last very long. People will start leaving! Unless I am missing something.

Shaddows

7:27 pm on Jul 17, 2009 (gmt 0)

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"Leaving" only makes business sence if you can replace it with another revenue stream.

Many people publish adsense because its an easy solution, not because it maximises revenue.

Maybe the YaSoft! [webmasterworld.com] deal will be attractive?

koan

7:39 pm on Jul 17, 2009 (gmt 0)

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In fact, with revenue up 3% and share down 6%, the rate of sharing is down just under 9%.

Right, I forgot about overall revenue. Anyway didn't we read in another thread that most of the drop for Adsense publishers share came from the expiration of sweet heart deals with big players like MySpace? Not trying to defend Google at all cost but just want to make sure the drop really reflect a decrease for individual Adsense earners.

 

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