Forum Moderators: goodroi
“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.”
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
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.
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.
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...]
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.
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...
"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.
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]
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
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.
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!
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.
In fact, with revenue up 3% and share down 6%, the rate of sharing is down just under 9%.
* 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.
Many people publish adsense because its an easy solution, not because it maximises revenue.
Maybe the YaSoft! [webmasterworld.com] deal will be attractive?
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.
