After the stock market closed today Google reported that it profits for the 3rd Q 2010 blowing away the projections and causing the stock to rise almost 10% in after hours trading.
Revenues jumped 23% to $7.3 billion, from $5.94 billion last year.
Net income was up 18% to $2.2 billion
Google said it earned $7.64 per share, while Analysts forecasted earnings of $6.69 per share.
Net revenue, which excludes commissions paid to advertising partners, was $5.48 billion, up from $4.38 billion a year ago.
Google said paid clicks grew 16% compared with the same period a year ago and 4% compared with the second quarter.
Cost per click was up 4%.
Google hired 1,526 people in the quarter, which brings the total number of employees to 23,331.
Google ended the 3rd quarter with $33 Billion in cash.
As I said shares of Google jumped in after market trading up almost $50 per share to $590.
Nice to see Google doing so well.
Of course our parking revenue continues to decline.
Ofcourse some of this increase comes at the expense of their Adsense partners getting paid less. Fall should see a pickup in earnings and pay per click, but it’s going down for me since end of summer.
Odd,
My adwords bids continually have to rise to get impressions, yet
PPC revenue is down.
Advertisers ARE paying, clicks ARE still expensive.
Publishers are paid less though.
Strange.
It’s a euphemism to use words like “decline”, I believe we’re getting ripped off and shafted.
do you have any doubt that, someday, the entire Web will be called (and will be owned by) Google???
Aron
It’s not strange it should be expected.
We (domainers) sold all of our traffic to Google and Yahoo 3 years ago when payouts where 10x higher.
They have been consistently cutting the money they pay to us, while increasing their profits quarter over quarter and year after year.
So its like this;
If you rent me your house for $5,000 a month one year and the next year I come to you and say hey I’m only going to pay you $2,500 a month for it and you say Ok, then the next year I say I’m only going to pay you $1,250 a month for your house and you say Ok wouldn’t you expect to me to only offer you $625 the next year?
If they can pay you less and less for your traffic and you keep giving it to them, why would your payments ever increase?
The best way to expand domaining income is to establish relationships directly with advertisers.
They are in effect running a monopoly, and are guilty of abusing that position in the worst possible ways:
What’s my percentage? ‘Not telling you’.
Can I tell people what I make? ‘No, and if you do we’ll ban you’.
All they need to do to show the quarterly figures they want, is take it. Who audits their clicks on behalf of Adwords buyers?
The reason they don’t buy up the biggest domain portfolios, is that they get the traffic for peanuts anyway.
The amount of traffic I get each month is trivial, but for guys like you Mike, and other big portfolio owners, I cannot understand why you haven’t yet started a joint advertising (or lead gen or whatever) platform – surely that is the way to go. Everyone bitches about declining PPC income, but what is happening about it? Anyone being proactive? How small does the slice of the cake have to get before neccessity overcomes laziness? I realise that on the whole, domainers like to do as little as possible, but isn’t it time to do things differently?
The top 2o portfolios must generate hundreds of millions of grade A uniques per month – think of getting 30cents for each of those. Think how much that would be saving advertisers over the cost at Google.
The current position is, advertisers are getting screwed – domainers and website owners are getting screwed – Google are laughing all the way to the bank.
On a micro level, I can and do sell some traffic directly to a small website selling products. They pay me £0.25 per unique and I send them approx 160 uniques per month. £40 for one domain – £480 per year. The previous two years that domain made $68 parked. Yes I had to make a few phone calls, and not all domains are suitable, but now I’ve got that customer in place it’s no harder than parking. I’ll bet that same traffic via Google would cost them £150 per month.
This position is, advertiser is happy – domainer is happy – Google are out of the picture.
That’s my Friday rant over with nice and early 😉
@James…..I agree totally with you James, except:
“I realise that on the whole, domainers like to do as little as possible,”
Please……….I’ve yet to meat a lazy domainer! In fact, in angers me when folks say this b/c it is not true.
I guarantee you I work hard as a Chilean miner. Okay, maybe not quite that hard, but I work 15+ hours a week, seven days a week.
I would also bet that Mr. Berkens works that hard also between being a successful domain investor, going to the shows, and running this blog. There is no way you can do all of this without it taking up virtually all your time. Honestly, I don’t even know where folks get time to run a domain blog…….I’m too busy to even do that.
Additionally, I just like to say: Thanks a lot Google for nothing, or close to it !
No wonder. I suspected this. They turned on one of my test accounts that had a 5,000 daily limit and 10.00 clicks. They ran up $8,000 in two days then hit my card for $5,000.
I suspect they crawled all the ad words accounts, manipulated the system and ran up every account they could find.
This is a dormant account that I turn on for an hour to test keywords and account performance. Of course I have challenged the event and cost.
It is artifical profits. Since it is a credit card it is not likely to be settled until next quarter.
P.S. the links were all to a recently parked website and produce no profit. The click throughs were all bounces on the web site.
@ sc, the Google crawler is aggressive!
It seems Google is trying to squeeze out the middleman – domain owner / developer – when it comes to connecting consumers with merchants:
Google Commerce Search 2.0
“By enabling a direct connection between online product data and fast, familiar Google search, Google Commerce Search (GCS) presents visitors with the specific information they need to make purchase decisions – with sub-second response times and unparalleled accuracy . . . GCS is a hosted, Software-as-a-Service (SaaS) o!ering that operates “in the loud,” giving you fast, advanced commerce search functionality without the need to deploy or manage on-premise hardware, software, servers, operating systems, cables, or other equipment. You simply upload product information . . . GCS intelligently leverages the product feed.”
Sounds like what Epik is doing: serving up vertical shopping experience based on feeds from different retail outlets.
@Deke – Yes, I could’ve worded that better. What I was trying to say was that while PPC was showing a reasonable return, there were few complaints. Even though then as now, we all know what needs to be done to max out revenues and that means having nothing to do with Google and being far less passive.
Even with all the above comments that are against google, I still dont feel anything will happen. Yes people are getting paid less which results in google reporting higher earnings – how does one stop that? Well, we need somethng better than google – which will be extremely hard to come by or even establish. The way to prevent google from such high profits is to not use them – which I dont see happening anytime soon. They are sadly dominating and can establish whatever rules they want. Unfair? Yes – but who can stop them?
Google Instant (that I haven’t disabled) could increase very much these (already good) results, since it really allows faster searches than other SE
the Bing/Facebook agreement is a good move against Google but Bing MUST offer a better service (with its own “instant” and, maybe, some original things) if they want to compete and increase the SE market share
As a monopoly they can cut costs.
No more yahoo ads, nothing.
They can also just keep costs the same knowing the advertisers will buy more ads.
Since they are spread out across more websites we get less.
Seems they are lowing what they pay from initial reports.
No one has the expertise to ‘go their own’. To hard. Try selling ads to companies. They don’t even return your call.
Another corporate giant pissing on the people who made them what they are…
“It seems Google is trying to squeeze out the middleman – domain owner / developer – when it comes to connecting consumers with merchants:”
Is’nt that always the way of big (greedy) corporations, the prices they charge businesses owners is crazy, the prices they give domainers for that same click is insanely greedy.
“Another corporate giant pissing on the people who made them what they are…”
The bigger they are, the harder they fall …their day will come, it always does 🙂
there are many traffic supply side platform that are competitive if not better than adsense now
I can see google today is “untouchables”. Beating their competitors easily and earning billion of dollars. Whew! what a money…