Recession Has Hit Google
Recession has hit Google: 1st quarter over quarter decline in ad revenue, still 6% up year over year; http://tr.im/j1xD
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Gerrit Eicker
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eicker. Wir sprechen Online. Folgen Sie uns zu relevanten Nachrichten rund ums Web. [RSS, Kontakt]
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Gerrit Eicker 08:43 on 17. April 2009 Permalink |
AdAge: “‘Google is absolutely feeling the impact,’ CEO Eric Schmidt said today. ‘Users are still searching, but they’re buying less. That means ads are converting less. There’s more window and comparison shopping, and they’re purchasing lower-priced goods. In other words, consumers are doing the right thing.’ He said the key for Google is to continue to preach the return it delivers, and manage its own expenses and bottom line. The search giant continued to grow its cash flow and ended the quarter with $17.8 billion cash in the bank.”
pC: “The company posted net income of $1.42 billion ($5.16 per share), up 8 percent from the $1.31 billion ($4.84 per share) recorded during the same period a year ago. Revenue for the quarter increased 10 percent to $4.07 billion, from $3.7 billion, excluding traffic acquisition costs.”
NYT: “‘Clearly the upside came from severe cost controls,’ said Christa Quarles, an analyst with Thomas Weisel Partners. Ms. Quarles said that capital expenditures, which include spending on data centers, have plummeted to $263 million, from $846 million in the first quarter of 2008. ‘They’ve been doing a lot of data center efficiency and consolidation,’ Ms. Quarles said.”
SEL: “(SVP Jonathan Rosenberg) added that Google was going to focus more on display advertising. Google was going to try to overcome some of the fragmentation in the online display market. Google wants to “turn a complex process into something simpler.’ He added, ‘We want to make display as relevant to users as search is,’ which was followed by a mention of Interest-based ads as instrumental in that process.”
pC: “Schmidt said that (Twitter) proved that ‘innovation is alive and well’ in Silicon Valley. ‘Without commenting specifically about Twitter … you could imagine that … it could be a channel for product information, marketing information, real-time information for which you can hang advertising products, whether it’s a text ad or a video ad or so forth off of it … It strikes me that’s a logical strategy for them to pursue and something that we would be very happy to pursue with them and all other players in that space.‘ Google has been rumored to be in discussions with Twitter about some sort of partnership.”