Call 03332 207 677

Stephen Logan

Despite Spending Big, Google Posts Huge Q2 Profits

15th Jul 2011 News, Industry News 1 minute to read


If you’ve ever wondered how much a search engine empire is worth, the answer is around $2.5billion each quarter. That’s not just income either, that’s net profit.

This is despite hiring 2,542 new staff and investing heavily in new technology/projects (including Google+ of course). No doubt a 12% increase in the amount advertisers are paying for clicks has helped. But with the overall revenue of the company reaching $9billion during the quarter, rising by over a third (36%) compared with the same period last year, it looks like it’s all looking rather rosy for new Chief Executive Larry Page [Source: This is Money | Google sees shares bounce after profit surge bolsters Larry Page in top job].

If you’re a shareholder in Google, this good news is no doubt sweetened further by the 12% surge in stock valuation. It’s certainly a remarkable story, particularly in this time of global austerity, that a company that essentially sells nothing of any physical value or substance can generate more than most countries.

However, that might provide scant reward for AdWords PPC users and display advertisers who have seen costs rise in the last 12 months. This of course is the prerogative of Google, who are effectively able to control the spend of millions of advertisers across the globe based on their market dominance. Indignant boycotting of Paid Search would simply have no effect, therefore the 12% increase is just something that has to be swallowed. Critics of course would point to this being one of the by-products of a monopoly.

Major outlays on new technology, such as the $400 million purchase of Admeld, ongoing social projects and continuing brushes with the regulators, could dent future profits; but so far this year it appears to be having little impact on the company’s bottom line.

In fact the figures even outstrip the expectations of most investment experts, with predictions of a 28% uplift widely anticipated yesterday. The news might not be so good for rivals though. Next week Yahoo will be releasing their highly anticipated quarterly results, which should finally shed some light on the ongoing Alibaba saga. This will certainly be well worth watching out for and I would imagine that these record figures from Google are going to bring very little cheer to the faces of Carol Bartz and her Yahoo team.

Share this post

Stephen Logan
About the author

Stephen Logan

Stephen Logan was a Senior Content Marketer at Koozai. With four years experience writing exclusively for the search engine marketing industry, he has amassed a wealth of industry related knowledge. He will be breaking news stories and contributing compelling SEO related stories.

What do you think?

  • aspect-ratio UK Search Awards Sam Noble Winner
    Cat Birch

    Samantha Noble Wins UK Search Personality 2016 at UK Search Awards

    The UK Search Awards is an exciting night for all; brimming with excitement, anticipation and pride, these awards showcase the very best in Digital Marketing. Our pride was overflowing as we watched our very own Sam Noble be honoured with the top prize of the night: UK Search Personality 2016.

    (more…)

    Cat Birch
    @MissCatBirch
    2nd Dec 2016
    News
  • aspect-ratio UK Search Awards Sam Noble Winner
    Cat Birch

    Koozai Shortlisted for Three Awards at the UK Search Awards 2016

    The UK Search Awards are here and we’re pleased to announce that we’ve been shortlisted for three awards at this prestigious ceremony.

    What an incredible year 2016 has been for us so far. We’ve celebrated turning 10 as a company, and in the last few months alone we’ve been nominated for a range of campaigns, won a bunch of awards and now we’ve been shortlisted for even more success.

    (more…)

    Cat Birch
    @MissCatBirch
    30th Nov 2016
    News

Digital Ideas Monthly

Sign up now and get our free monthly email. It’s filled with our favourite pieces of the news from the industry, SEO, PPC, Social Media and more. And, don’t forget - it’s free, so why haven’t you signed up already?