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In Russia, Google’s New Service Grows Fast

Begun enjoys increasing reach, revenue

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Russian contextual ad network Begun, purchased by Google from Rambler Media, saw a quick uptick in its business through the start of 2008.

Google profits from international business more than domestic business. It’s a simple fact of the company’s earnings announcements; more revenue comes in to the Googleplex from outside the United States.

The situation prompted Google to continue its expansion by purchasing Begun for $140 million. They may have picked up a steal of a deal.

At Profy.com, Svetlana Gladkova cited Begun’s announcement of a bountiful start to 2008. First half profits exceeded all of 2007′s by 25 percent, she said.

“The profit achieved is explained not only by the mere number of new advertisers it attracted – advertisers also spend more on contextual ads: an average monthly spending limit is 9% higher now,” said Gladkova.

Begun reaches some 173,000 publishers, and has relationships with numerous advertising agencies in the country. That influx of Google cash should help this growth continue, while competitors simply watch as Google builds dominance abroad.

In Russia, Google’s New Service Grows Fast
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