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Adsense 2nd qtr revenue $630 million

Up 82 percent over last year. Goog down 10 percent

         

Freedom

8:16 am on Jul 22, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Surprised this isn't being discussed yet.

Google Inc. on Thursday said second-quarter profit quadrupled as more people clicked on online ads, yet signs that the company's astounding growth was tapering off sent its shares tumbling nearly 6%.

(The price actually dropped a total of 10 percent in after-hours trading according to other reports.)

Revenue from the ads Google brokers on the websites of partners such as Time Warner Inc.'s America Online rose 82% to $630 million.

Article [latimes.com]

Direct quote from Google's 2nd qtr statement:

The Google Network - Revenues generated on Google's partner sites, through AdSense programs, contributed $630 million, or 46 % of total revenues, an 82% increase over the Network revenues generated in the same quarter last year.

Google's 2nd qtr Report [investor.google.com]

hunderdown

5:21 pm on Jul 22, 2005 (gmt 0)



And Traffic Acquisition Costs--that's what they pay out to us--were $494 million. So the percentage we got was 494/630 = 78.4% Pretty much what it has been in other quarters.

One other thing interests me. Revenue on Google itself grew by 115% over the previous year. Revenue on the network grew by "only" 82%. Does that mean there's untapped demand for more growth?

europeforvisitors

5:34 pm on Jul 22, 2005 (gmt 0)



One other thing interests me. Revenue on Google itself grew by 115% over the previous year. Revenue on the network grew by "only" 82%. Does that mean there's untapped demand for more growth?

Yes, for three reasons:

1) Many AdWords advertisers still aren't using the content network;

2) The online advertising industry is barely out of diapers.

3) Google has begun to introduce new AdSense products (such as site-targeted CPM ads) that will appeal to a broader range of advertisers.

Zygoot

6:28 pm on Jul 22, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



2) The online advertising industry is barely out of diapers.

Indeed.

I recently read an article which stated only 4 percent of the total advertising expenditure is spend on the Internet.

Freedom

7:22 pm on Jul 22, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Earlier this year "they" (experts) predicted a 20 percent growth in online advertising for just this year.

Rodney

7:29 pm on Jul 22, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Surprised this isn't being discussed yet.

There was another thread about it here, but I guess yours came first :)
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