Bankruptcy’s , layoff’s , and dismal financial reports have been headline news for the tech industry recently, but Google as always likes to reminds us that advertising is the place to be. The search giant reported a revenue increase of 18 percent over Q4 2007, and a 3 percent bump compared to Q3 2008. This brings Google’s quarterly revenue to 5.7 billion according to generally accepted accounting principles (GAAP), and includes a 1.48 billion dollar traffic-acquisition cost.
"Google performed well in the fourth quarter, despite an increasingly difficult economic environment. Search-query growth was strong, revenues were up in most verticals, and we successfully contained costs," said CEO Eric Schmidt. "It's unclear how long the global downturn will last, but our focus remains on the long term, and we'll continue to invest in Google's core search and ads business as well as in strategic growth areas such as display, mobile and enterprise ."
Google continues to see the majority of its revenue and growth come from its own network of sites. Around 3.81 billion was turned in by the home team which represents a 22 percent growth over 2007. Partner site revenues generated through AdSense came out to 1.69 billion. That’s nothing to sneeze at, but it only represents a meager 4 percent increase over 2007. "Online advertising as a whole is doing better than traditional media and, within the online segment, search has been the strongest and most resilient component because it's perceived to deliver the most efficient ROI," Sterling said. "Search has been well established and is being reaffirmed right now as people are try to cut the perceived fat from their marketing budgets."
Can Google continue to dodge the recession?