October 10-14, 2011
Google reports strong earnings, exceeding expectations- Google presented its Q3 earnings on Thursday, surpassing analysts’ expectations with a net income increase of 26 percent. Google’s Q3 2011 revenue of $9.72 billion represents a 33 percent increase Y/Y. Google’s biggest winner for the quarter was unquestionably mobile. CEO Larry Page told investors during the earnings call yesterday that Google expects to earn $2.5 billion this year in mobile ad sales—a massive increase from $1 billion in 2010. Here are a few highlights from Google Q3 earnings report:
- Revenues – Google reported revenues of $9.72 billion in the third quarter of 2011, representing a 33% increase over third quarter 2010 revenues of $7.29 billion. Google reports its revenues, consistent with GAAP, on a gross basis without deducting TAC.
- Google Sites Revenues – Google-owned sites generated revenues of $6.74 billion, or 69% of total revenues, in the third quarter of 2011. This represents a 39% increase over third quarter 2010 revenues of $4.83 billion.
- Google Network Revenues – Google’s partner sites generated revenues, through AdSense programs, of $2.60 billion, or 27% of total revenues, in the third quarter of 2011. This represents a 18% increase from third quarter 2010 network revenues of $2.20 billion.
- International Revenues – Revenues from outside of the United States totaled $5.3 billion, representing 55% of total revenues in the third quarter of 2011, compared to 54% in the second quarter of 2011 and 52% in the third quarter of 2010.
- Paid Clicks – Aggregate paid clicks, which include clicks related to ads served on Google sites and the sites of our AdSense partners, increased approximately 28% over the third quarter of 2010 and increased approximately 13% over the second quarter of 2011.
- Cost-Per-Click – Average cost-per-click, which includes clicks related to ads served on Google sites and the sites of our AdSense partners, increased approximately 5% over the third quarter of 2010 and decreased approximately 5% over the second quarter of 2011.
IRS to audit Google for offshore subsidiaries- Bloomberg reported that the IRS has launched an investigation into whether or not Google avoided federal income taxes by hiding profits in offshore subsidiaries. Specifically, the IRS has inquired into Google’s offshore deals, including its 2006 acquisition of YouTube for $1.65 billion.
+1 button to appear on display ads- Google announced on Monday that +1 buttons would start appearing on display ads immediately. Google hopes that integrating personal recommendations and display ads will impact the way consumers view and interact with display advertising. As Dan Friedman, from the Inside AdWords Team, explains, “A display ad becomes much more powerful when people can see which of their friends and contacts have chosen to endorse it.”
40% of tablet and smartphone users multi-task while watch TV- A new report from Nielsen reveals that roughly 40 percent of tablet and smartphone owners in America simultaneously use their devices and watch TV. Email was the most common activity for both men and women, followed by social media for women and checking sports scores for men. Nielsen also notes at the end of their report that despite splitting their attention between two screens, “19 percent of smartphone and tablet owners searched for product information and 13 percent searched for coupons or deals while the television was on.”
Stanford study reveals leaky websites- A new report from Jonathan Robert Mayer and Center for Internet and Society at Stanford Law School concludes that personal information is regularly leaked across the web without user consent or knowledge. Specifically the report reveals that where you travel online—in computer jargon your ‘clickstream’—, which we assume to be private and anonymous, can actually be traced back to identifiable parts of your personal information such as your name, email address, etc. As Mayer explains, “Click the local Home Depot ad and your email address gets handed to a dozen companies monitoring you. Your web browsing, past, present, and future, is now associated with your identity.” The report found leaks in 185 leading web sites, including Home Depot, Photobucket and the Wall Street Journal.
Google+ welcomes real-time search and improved hashtags- Google’s Vic Gundotra introduced two new features to Google+ yesterday: real-time search and improved hashtag support. The features should make it easier for users to follow and engage with live events on Google+.
What we’re reading:
“YouTube Makes the Case That It Helps Build Brands”– Claire Cain Miller highlights the unique role YouTube seeks to play in brand marketing. By combining social engagement, global reach and advanced targeting, Lucas Watson, YouTube’s vice president of online video global sales, seeks to convert YouTube into a viable online media channel—for both off- and online advertisers.
Why You Can’t Compare Google+ User Figures To Facebook & Twitter– Danny Sullivan explores why you can’t compare Google+ user figures, which recently reached 40 million, with Facebook’s or Twitter’s.
“Big Data in the Dirt (and the Cloud)”– Quentin Hardy takes a closer look at Climate Corporation, a company founded in 2006 by two former Google employees, which leverages data published by the National Weather Service to make predictions on the effect of weather on crops across the country.