Home  › Search › Paid Search
google-larry-page2

Google CEO Douses Acquisition Talk

  |  April 12, 2012   |  Comments

Tech giant's Q1 earnings call reveals $10 billion in ad sales, as CPC falls again.

Google CEO Larry Page on Thursday appeared to address industry speculation about whether his company would buy Pinterest or another lucrative tech property in wake of Facebook purchasing Instagram.

"We don't have a big acquisition plan, in case you are wondering," said Page, during the firm's Q1 earnings call. The comment followed statements about how his company is committed to developing products in-house.

Amid an otherwise strong earnings report, Google for the second consecutive quarter announced CPC prices were down, by 12 percent year over year for the quarter.

Execs for the technology giant assigned multiple reasons for the price decline, namely a shift towards mobile usage, increased targeting capabilities, and higher click volume. Aggregate paid clicks rose 39 percent over Q1 of last year.

"By adding [line items] that are more targeted," explained Nikesh Arora, Google senior VP and chief business officer, "you have less CPC for site links. But if it's a better ad, people click [a lot] more on them."

Google CFO Patrick Pichette said the CPC price drop does not "reflect the fundamental health of our business. In fact, our advertisers' bids continue to be strong and growing."

There was plenty of good news on the advertising front, though. Ad revenues on Google-owned sites in Q1 2012 totaled $7.3 billion, and $2.9 billion on network sites. Total ad revenues grew from $8.3 billion in Q1 2011 to $10.2 billion this year.

Brands across niches, Arora said, "are finally looking to digital media as an integral part of their marketing plans." For the ad industry's change in attitude, he credited increased brand confidence in how digital affects offline sales.

Arora said a recent global campaign by Reebok - which ran across Google.com, YouTube, Gmail, etc. – as well as Unilever's efforts in Brazil, are examples of the company enabling multinational ad initiatives. And the firm's focus on mobile advertising is intensifying, he suggested.

"Mobile is quickly becoming the backbone to advertisers' strategies," Arora said. "We keep working to help the mobile ecosystem."

Overall, Google reported Q1 2012 revenue at $10.65 billion, a 24 percent growth compared to the same period last year. Traffic acquisition costs also rose over Q1 2011, from $2.04 billion to $2.51 billion.

More than half - 54 percent - of Google's revenues came from overseas. The company reported $1.15 billion or 11 percent of revenues came from the U.K.

ClickZ Live San Francisco This Year's Premier Digital Marketing Event is #CZLSF
ClickZ Live San Francisco (Aug 11-14) brings together the industry's leading practitioners and marketing strategists to deliver 4 days of educational sessions and training workshops. From Data-Driven Marketing to Social, Mobile, Display, Search and Email, this year's comprehensive agenda will help you maximize your marketing efforts and ROI. Register today!

ABOUT THE AUTHOR

Christopher Heine

Christopher Heine was a senior writer for ClickZ through June 2012. He covered social media, sports/entertainment marketing, retail, and more. Heine's work has also appeared via Mashable, Brandweek, DM News, MarketingSherpa, and other tech- and ad-centric publications. USA Today, Bloomberg Radio, and The Los Angeles Times have cited him as an expert journalist.

COMMENTSCommenting policy

comments powered by Disqus

Get the ClickZ Search newsletter delivered to you. Subscribe today!

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.

WEBINARS

Jobs

    • Interactive Product Manager
      Interactive Product Manager (Western Governors University) - Salt Lake CityWestern Governors University, one of the 20 largest universities...
    • SEO Senior Analyst
      SEO Senior Analyst (University of Phoenix (Apollo Education Group)) - San FranciscoSEO Senior Analyst   Position Summary...
    • SEM & Biddable Media Manager
      SEM & Biddable Media Manager (Kepler Group LLC) - New YorkAs an Optimization & Innovation Manager at Kepler Group, you will be on the bleeding...