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During a time that we are supposed to be watching stocks fall, and markets dry up, Google announced last week that profits rose 26%. "Net income rose… $4.24 a share from the previous year at the same time." reports MarketWatch.
What can be attributed to this positive economic growth?
Numerous things. Namely;
Responsible growth; Google cut spending in a number of areas including R & D and added 500 new employees; a conservative number compared to previous quarters.
Google Adwords; Even in a down market, companies are still going to be seeking new customers to improve their customer base. Infact – maybe more. Google Adwords is directly responsible for this development.
Continued dominance of Google as primary search engine. Comscore confirmed yet another gain compared to other search engines from June to July 2008. Thats right, Google is still accounting for almost 62% of all searches. Much higher then Yahoo! at 20.5% and MSN (who declined from June 2008) at 8.9%
Quote From Google CEO Eric Schmidt
"While we are realistic about the poor state of the global economy, we will continue to manage Google for the long term."
Does King Eric sound worried to you? This attitude confirms what we have been saying in earlier posts that search engines and internet marketing in general should not suffer as this is still the most effective way to reach markets that are seeking services. It is simply too attractive to ignore.
Related posts:
4 Responses to “Google Shows Increased Profit Despite Economic Slowdown”
What this shows the search business is still a safe haven for marketers amid economic downturns.
I think if the trend goes like this we can expect a strong shift in advertising pattern from offline to online medium – because it is clearly the measurable way of seeing where your advert dollars are going!
October 27th, 2008 at 10:13 pm
Our daily papers are full of stories of the various cost cutting measures resorted to by companies to weather the economic storm. More and more companies are switching over to online sales as a cost cutting measure and also because it can serve a wider geographical area. I feel online sales will show improved results and online companies generally are in for better times. Google’s financial results are merely a pointer.
October 28th, 2008 at 10:47 pm
It’s really remarkable that Google has been able to weather the slowdown and register increased profits. It just goes to show that they are doing a lot of things right and with foresight. At a time when firms are lining up pink slips and thinking hard about cutting costs, Google it seems can afford to relax albeit a bit cautiously. May others emulate it.
October 30th, 2008 at 1:54 am
[...] scrambling to capitalize on a more cost effective and measureable way to generate business. Google announced profits rose 26% from the previous quarter in a mid October announcement. How can this be you [...]
October Rise To The Top Wrapup | Rise to the Top Blog
November 7th, 2008 at 12:51 am