Google’s earnings data, released a few weeks ago, reveal some interesting facts about search marketing beyond the normal headline figures – including that international revenues have fallen relative to their total turnover – see chart below. (Note that this chart was produced by analysts at WebCertain.com and is provided as a guide only.) From a turning point at the beginning of 2007, when US revenues flattened, international revenues became greater than US revenues. The credit crunch has clearly changed the pattern of revenue so that non-US has dropped back to match the levels of the US once more. Of course, exchange rates also affected these figures.
Google’s net income (profit) in the fourth quarter of last year was $382m which was a 68% fall over the equivalent quarter in the previous year where profits were $1,206m. Turnover was 22% up on the previous year.
Intriguingly Google clicks increased from quarter 3 in 2008 by 18% but revenues were only 3% up which suggests a significant average reduction in click costs.
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This is interesting information. I have a number of clients utilizing Google Adwords and have not seen a decrease in keyword click costs. Actually it has been just the opposite. The keywords that I bid on for my clients have actually gone up slightly. Do you think their Content Network and the lower CPCs could have contributed to the higher click volume and small revenue increase? To get the most out of my clients’ budgets, I try to place them between 3rd and 4th positions so the CPC is lower.