Google Q1 success
The Google Q1 results show an increase in earnings and gross revenues, both of which are significantly higher than the 2011 Q1 return.
Google has seen an increase in gross revenue of 24 per cent in comparison to the first quarter of 2011. The Q1 return during 2011 was $8.58 billion (£5.39 billion), while in 2012 Google managed to gain a gross income of $10.65 billion (£6.69 billion) before traffic acquisition costs.
A Google Investor Relations blog post highlights exactly how the search engine giant has been able to increase its earnings so significantly. Google-owned sites helped to create a large percentage of the total overall Q1 revenue by generating $7.31 billion (£4.59 billion). The post also suggests that revenues created from partner sites, international profits and paid clicks were also on the increase.
Google and pay-per-click
While there were plenty of highs within the Q1 results, Google pay-per-click (PPC) fell by 6 per cent. This is the second quarter that it has been in decline. It could be suggested that this dip is a result of foreign exchange rates and an increase in mobile browsing, where advertising space is cheaper.
In a Youtube post about Google Q1 Results, Larry Page, chief executive at Google, said: "If anything, lower CPCs give better return on advertising spend: it's a lower cost so a better return on investment for advertisers."
Natalie Booth, assistant marketing manager at theEword, stated: "The Q1 results show an exponential growth for the company. The dip in cost-per-click is a problem that Google should be able to reverse as mobile browsing becomes increasingly popular. What's more, the new Google PPC automation tool introduced this week could result in a surge of smaller businesses getting involved in PPC advertising."