WildBlueSkies – Trends and strategies in Digital Media

In yet another sign that the global economy may be on the mend, Google said that its net income rose 27% in the third quarter as brisker advertising sales lifted revenue 7%.
Google reported net income of $1.64 billion, or $5.13 a share, compared with $1.29 billion, or $4.06 in the period a year earlier. Revenue was $5.94 billion, up from $5.54 billion last year.
Net revenue, which excludes commissions paid to advertising partners, was $4.38 billion, up 8%, from $4.04 billion. Adjusted income, excluding the cost of stock options and other items, was $5.89, up from $4.92 a year earlier (on an average, Wall Street analysts expected Google to report adjusted income of $5.40 a share on net revenue of $4.23 billion).
While Google’s revenue growth was strong when compared with the first half of the year, it was only a fraction of what it was in prior years. Google grew at 31% in 2008 and 56% in 2007. It hit the slowest growth rate in its 11-year-history, 3%, in the second quarter. [Via]
However, the silver lining is that Since Google focuses mainly on performance campaigns, and hence their revenues would rise only if netizens are clicking on ads, the inference is that if consumers are clicking on ads, they are doing so with an inclination to buy, which in turn bodes well for the economy.

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Filed under: Business

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