Google’s revenue increased significantly over last years numbers. Revenue for this last quarter, ending June 2005, totaled over $1.38 billion, more than double last years revenue for the same quarter, which was a little over $700 million.
Google tracks the commissions paid to its search partners, primarily webmasters participating in Google’s AdSense program, under the name Traffic Acquisition Costs, or TAC. TAC for the last quarter totaled $494 million, a number that is likely to play some role in Google’s defense of the first click-fraud litigation, recently filed against the Mountain View-based company by pay-per-click analysis firm Click Defense.
Thursday’s announcement follows similar reporting from Google’s biggest search brand competitor, Yahoo Inc. Yahoo, only two days before, had disappointed its investors with their announcement of earnings that merely matched expectations rather than greatly exceeding them.
Google’s search engine is more widely used than Yahoo’s which is perhaps Google’s greatest advantage in the search advertising market. Each search query provides the search engines the opportunity to present the searcher with a set of “sponsored listings”, text linked advertisements that generate revenue for the search engine every time the searcher chooses to click on one of the ads. Google handled more than double the 2.8 billion searches conducted on Yahoo.com during the same 90 day period, according to Nielsen/NetRatings.
Nielson/NetRatings Reports new online search Meta data
Nielson, an online statistics provider, reports that Google still commands 47 percent of the searches conducted online. Yahoo has 22 percent, MSN 12 percent, AOL 5 percent and Ask Jeeves 2 percent. Google processed some 6 billion search queries to its online index, approximately 66 million searches per day for months April through June 2005.
Quote from Google’s Press Release
“We had an excellent quarter. We continued to innovate, we continued to execute and we stayed focused on our users,” said Eric Schmidt, Google chief executive officer. “Google had another solid performance.”