Google Sees Higher Display Ad Spend From CPG Clients

  |  April 15, 2010   |  Comments

Entertainment companies were also among those to boost their spending on Google's ad network.

Higher spending by clients in some categories helped buoy Google's display ad business during the first three months of 2010, executives said today.

Large entertainment and packaged goods companies were among those to boost their spending on Google's ad network, CFO Patrick Pichette said during the company's quarterly earnings call. "Large advertisers have come back," he said.

The return of big budgets goes back to at least Q4, when CEO Eric Schmidt called display advertising "the next huge business for us."

Google's Q1 revenue grew 23 percent compared with the 2009 period, driven in part by a 15 percent year-over-year increase in "aggregate paid clicks" - a term that refers to the total number of ad clicks on both Google-owned properties and partner sites. Additionally, the company enjoyed an average cost-per-click (CPC) that was 7 percent higher globally than in Q1 2009. Performance was strong across all major product areas, including search, display, and enterprise.

Google has been true to its promise - voiced a year ago - that it would ramp up hiring and M&A activity. The acquisition spree that kicked off last fall with the purchase of Teracent continued this year with the buys of video platform Episodic and British startup Plink, among other firms. (Google's proposed acquisition of AdMob remains in regulatory limbo.) The company is now queuing up additional M&A activity, Pichette said.

Google said it added 786 employees during the quarter, bringing its headcount to nearly 21,000. Pichette said the company remains focused on hiring talented people in ad sales and engineering.

During the call, VP of product management Susan Wojcicki ticked off a few of Google's Q1 ad product roll-outs. Among them were search funnels, above-the-fold targeting in its ad network, remarketing, and mobile-specific ad formats and targeting.

She said one near-term product priority is the development of ad models where marketers pay only for conversions, an area Google entered last year with the debut of product ads.

"We definitely see potential in cost-per-acquisition," Wojcicki said. Typically in such arrangements, she noted, "a retailer gives us all information about products. Google does the targeting to decide where to show those ads, and we take a percentage when the user converts. That's something we're investing in."

ClickZ Live Chicago Learn Digital Marketing Insights From Leading Brands!
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, or register and attend one of the best ClickZ events yet!

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

UPCOMING TRAINING

Featured White Papers

Google My Business Listings Demystified

Google My Business Listings Demystified
To help brands control how they appear online, Google has developed a new offering: Google My Business Locations. This whitepaper helps marketers understand how to use this powerful new tool.

5 Ways to Personalize Beyond the Subject Line

5 Ways to Personalize Beyond the Subject Line
82 percent of shoppers say they would buy more items from a brand if the emails they sent were more personalized. This white paper offer five tactics that will personalize your email beyond the subject line and drive real business growth.

WEBINARS

Jobs