Google has reported a significant increase in profits for the third quarter which ended September 1 – a 26% surge to $1.35bn (£778m) to beat analyst forecasts. This despite the global financial crisis and overall downturn in the advertising market.
Revenues for the quarter could be broken down as folllows:
- Revenues including commissions to affiliated advertisers, rose 31% to $5.54bn (3.19bn).
- Paid Search up by 18% compared to Q3 2007
- £1.682.5m was spent during H1 2008 – an increase over 348.2m year on year
- Thats a 21% increase on H1 2007
- Despite many markets shrinking (Direct Mail 5.9%, Outdoor 4.2%), Online continued to grow significantly – up by early 20.9%
- Market share up to nearly 19% up fromm 15.9% in H2 2007
- Spend in online was only just below Press Display (1737.7m) and Television (1951.8m)
Whilst Google has seen strong performance, it is testament to the increased priority of online in the marketing mix. Certainly SEO has seen a strong surge in interest according to recent Google trends, and I would suggest SEO budgets are also likely to see significant growth during 2009/2010.