Google reaps advertising rewards with $16bn revenue

Google posts healthy financial results thanks to advertising growth

Google has reported a hike in second quarter profits after revenue rose to $16bn, fuelled by advertising demand. At the same time it announced the imminent loss of its chief business officer.

The latest financial report from the search giant revealed that revenue has grown by $3.5bn, representing a 22 percent increase since the same quarter in 2013. Crucially, profits were up by six percent compared with 2013, securing $3.4bn for Google. 

Unsurprisingly, advertising remains responsible for the lion’s share of Google revenues totalling in at $14.3bn and growing by 19 percent year-on-year.

Paid clicks – where Google makes money from advertisers – on its own sites and those of network members increased by nearly 25 percent.

Fortunately for Google the cost-per-click of its adverts – the cut it pays its partners – decreased by approximately six percent.

The pending departure of chief business officer Nikesh Arora was also announced with the report. Arora will move to SoftBank and be temporarily replaced by Omid Kordestani, who previously headed up the company’s sales team.

Arora revealed in a conference call that Google will be continuing to drive advertising on mobile and multi-format platforms: “The teams are laser-focused on making ad campaigns easier across screens and helping businesses measure their effectiveness across devices.”

When asked about the advertising potential of recently announced Android-powered televisions, watches and other devices Arora added: “I think in the long term we have to think of this as a user-centric model where helping users to take their services from one screen to the other and making that happen seamlessly and if that works out I think there will be phenomenal business opportunities for us in the future.

“But at Google we always worry about the user first and we’ll figure out the monetisation when we have a lot of users.”

Google’s cash reserves also grew from $59bn to $61bn and the company now holds a total of $121.6bn in assets.

In the UK, Google’s performance was in line with its overall revenue growth. This year the UK provided Google with $1.6bn in revenue, 10 percent of the company’s total.

The amount of people Google employs also rose this year, the company now has 52,069 full-time employees, several thousand more that it had last year.

This is in stark contrast to Microsoft, which announced this week that it would be cutting 18,000 jobs across the company, though it is worth noting that Microsoft has well over twice the number of employees as Google.

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Source: v3.co.uk
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