Google Kills Estimates

CPC Inflation Strategy Pays Off

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Google shares spiked by over 18 percent in after hours trading, about the same time the search giant’s earnings report hit. The dramatic rise is attributed to a trouncing of Wall Street estimates.

Google reported revenues of $5.19 billion for Q1 2008, or $3.7 billion after traffic-acquisition costs, pulling in a non-GAAP earnings per share of $4.84. Analysts had predicted $3.61 billion in revenues and an EPS of $4.52.

Closing at $449.54, Google is currently trading at about $531.

"Our ongoing innovation in search, ads, and apps helped drive healthy growth globally across our product lines, yielding another strong quarter for Google," said Eric Schmidt, CEO of Google.  "As we integrate DoubleClick into our advertising platform, we see exciting new ways to improve the user experience and increase value for our advertisers and partners.  Also, while exercising operational discipline, we continue to explore opportunities that add value to users everywhere and to Google in the long term."

Prior to Google’s earnings report, Efficient Frontier released information suggesting that Google numbers were up all around. Based on metrics pulled from 18 billion impressions and 310 million clicks, Efficient Frontier said Google had grabbed 77 percent of the search advertising spend in Q1, gaining 3.3 percentage points over the past year.

Return-on-investment for advertisers, though, had increased by 24 percent, click-through rates had improved by 19 percent, while cost-per-click had increased by 11 percent.

"Google’s efforts around improving the quality of search results appear to have increased the value of the search channel for the leading advertisers that we work with in all major verticals," said James Beriker, President and CEO of Efficient Frontier.

That gamble—decreasing the search ad real estate while increasing cost-per-click—seems to have really paid off for a struggling to impress search giant. 

Google Kills Estimates
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  • http://www.tripleme.com Andrew Sorokin

    Google is not best way. Try metasearch http://www.tripleme.com which fetching results from Google,Yahoo,MSN on one screen in three columns side by side – 3 in 1 solution.

    According to TripleMe users statistic data of 20000 requests, 40% of results found in the Google column, 31% of results found in the Yahoo column and 27% of results found in the MSN Live column.

    So, if  you use only Google – you loose 60% of potential results !!!

    3 in 1 solution is definitely the way of searching today.

  • http://www.hemroidshelp.com hemroids

    The sheer efficiency of Google in business is awe-inspiring. Google continues to simply mop up on competition by being three steps ahead and thinking of unique directions, as well as making key acqusitions. GA, Youtube are examples of important mileston acquisitions for Google.com

  • http://www.animaroo.com puppies for sale

    I tell ya, I should have bought shares long ago in Google.com, because those shares would have paid off many times over!

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