Google gains as ad industry gags

San Francisco (CA) – Google has reported revenues of $5.52 billion for
the quarter ended June 30, 2009. According to CEO Eric Schmidt, 2Q
year-over-year revenues registered a respectable increase of 3 percent
despite the difficult economic climate.


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

Schmidt explained that Google-owned sites generated revenues of $3.65
billion – or 66 percent of total revenues – in the second quarter of
2009. This figure represents a 3 percent increase over second quarter
2008 revenues of $3.53 billion.

Other notable statistics include:

  • AdSense programs – Generated $1.68 billion, or 31 percent of total revenue.
  • International revenues (excluding the US) – reached an impressive $2.91 billion, representing 53 percent of total revenues.
  • Income from the United Kingdom – Totaled $715 million.
  • Aggregate paid clicks – Clicks related to ads served on Google sites
    and the sites of AdSense partners increased approximately 15 percent
    over the second quarter of 2008 and decreased 2 percent over the first
    quarter of 2009.
  • Average cost-per-click – Clicks related to ads served on Google sites
    and the sites of AdSense partners decreased approximately 13 percent
    over the second quarter of 2008 and increased 5 percent over the first
    quarter of 2009.
  • Traffic Acquisition Costs – The portion of revenues shared with
    Google’s partners decreased to $1.45 billion in the second quarter of
    2009, compared to TAC of $1.47 billion in the second quarter of 2008.
  • TAC as a percentage of advertising revenues – Fell slightly to 27
    percent in the second quarter of 2009, compared to 28 percent in the
    second quarter of 2008.

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