Google's Q1: Search Holds Steady While Network Revenues Slip

  |  April 16, 2009   |  Comments

AdSense suffers a year-over-year revenue decline, but the company's core product continues to grow.

Google's ad network business was roughed up by the recession last quarter, but search advertising is holding steady.

Reporting its Q1 earnings today, Google said ad revenues generated by its AdSense network of Web site partners totaled $1.64 billion, a 3 percent drop compared to the year-ago period. AdSense also represents a smaller chunk of the company's business -- 30 percent for the quarter just ended compared to 33 percent in Q1 2008.

Meanwhile ad performance held up on Google.com and the company's other in-house properties. Google site revenues were $3.7 billion, representing a 9 percent annual growth rate.

Notably, Google experienced its first sequential revenue declines during Q1. It reported total revenues of $5.5 billion for the quarter, representing a quarter-to-quarter loss of 3 percent. The annual growth rate was 6 percent.

"These results underline both the resilience of our business model and the ongoing potential of the Web as users and advertisers shift online," said CEO Eric Schmidt in a statement.

Google reported earnings per share of $4.51 on net income of $1.4 billion. The company's headcount at the end of the first quarter was 20,164, down slightly from 20,222 at the end of Q4 owing to natural attrition and the company's first-ever layoffs.

Additionally, the company announced its global sales chief, Omid Kordestani, will take on a new role as senior advisor to Eric Schmidt and Google's founders. He'll be replaced by Nikesh Arora, currently President of International Operations. Arora's new title is president of global sales operations and business development.

ClickZ Live Chicago Join the Industry's Leading eCommerce & Direct Marketing Experts in Chicago
ClickZ Live Chicago (Nov 3-6) will deliver over 50 sessions across 4 days and 10 individual tracks, including Data-Driven Marketing, Social, Mobile, Display, Search and Email. Check out the full agenda and register by Friday, August 29 to take advantage of Super Saver Rates!

ABOUT THE AUTHOR

Zachary Rodgers

Until March 2012, Zach Rodgers was managing editor of ClickZ's award-winning coverage of news and trends in digital marketing. He reported on the rise of web companies, data markets, ad technologies, and government Internet policy, among other subjects. 

COMMENTSCommenting policy

comments powered by Disqus

ClickZ Today is our #1 newsletter.
Get a daily dose of digital marketing.

COMMENTS

UPCOMING EVENTS

Featured White Papers

BigDoor: The Marketers Guide to Customer Loyalty

The Marketer's Guide to Customer Loyalty
Customer loyalty is imperative to success, but fostering and maintaining loyalty takes a lot of work. This guide is here to help marketers build, execute, and maintain a successful loyalty initiative.

Marin Software: The Multiplier Effect of Integrating Search & Social Advertising

The Multiplier Effect of Integrating Search & Social Advertising
Latest research reveals 68% higher revenue per conversion for marketers who integrate their search & social advertising. In addition to the research results, this whitepaper also outlines 5 strategies and 15 tactics you can use to better integrate your search and social campaigns.

Jobs

    • Sales Planner
      Sales Planner (Verve ) - New YorkAbout Verve   Verve is the leader in location powered mobile advertising. We manage one of the largest mobile...
    • Systems Analyst/Support
      Systems Analyst/Support (Agora Inc. ) - BaltimoreIRIS (Increased Revenue Intuitive Software ) is proprietary software that helps marketers...
    • Client Services Support Specialist
      Client Services Support Specialist (Agora Inc. ) - Delray Beach OVERVIEW:  This position requires a highly motivated and resourceful individual...