In a very cautions business environment, Google continue to show significant increases in revenues. Despite the supposed increase in competition and a lacklustre economy, Google announced a 23% increase in revenue in comparison to Q3 2009.
Although figures were not broken down by Google CEO, Eric Schmidt he did highlight that both mobile and display had seen “significant momentum’. The quote in context went as follows:
“Google had an excellent quarter,” said Eric Schmidt, CEO of Google. “Our core business grew very well, and our newer businesses — particularly display and mobile — continued to show significant momentum. Going forward, we remain committed to aggressive investment in both our people and our products as we pursue an innovation agenda.”
Source: Search Engine Land
The figures can be broken down further as follows:
- Revenue – Google reported revenues of $7.29 billion in the third quarter of 2010 This represented a 23% increase over 3rd quarter 2009 revenues of $5.94 billion. It should be noted that Google reports its revenues, consistent with GAAP, on a gross basis without deducting TAC.
- Google Sites Revenues – Google-owned sites generated revenues of $4.83 billion (roughly 67% of total revenues). This represents a 22% increase over third quarter 2009 revenues.
- Google Network Revenues – Google’s partner sites generated revenues, through AdSense programs, of $2.20 billion, or 30% of total revenues, in the third quarter of 2010. This represents a 22% increase from third quarter 2009.
To put the context of this revenue in relation to the UK industry, the following trends were highlighted:
- Revenues for the UK were not as high – representing an 8% rise on the same period last year up from £765,000,000 to £840,000,000.
- This was significantly lower than the US (20.3%) and the Rest of the World figures (up 18.
The level of spend in the UK in comparison to the ROW is perhaps not surprising given many of the traditional big spenders such as travel, property and finance do not appear to be spending the same volumes as they were at the height of the boom years, however one can’t help thinking that we should see those revenues increase as the Display and Mobile products mature here in the UK.
The UK still represents a massive marketplace for Google accounting for around 11% of total Google revenues. This figure however was down from just under 13% in Q3 2009. This however could be down to a number of factors such as maturing foreign markets and existing market conditions (something I will look into further).