San Francisco - Internet search and advertising leader
Google Inc on Thursday said its third-quarter profits jumped 26 per
cent, as more people used Web search advertisements to increase sales
amid the continuing economic downturn.
Google's net income rose to 1.35 billion dollars from 1.07 billion
dollars, according to a company statement. Its revenue grew 31
percent to 5.54 billion dollars, up from 4.23 billion dollars a year
earlier.
'We had a good third quarter with strong traffic and revenue
growth across all of our major geographies thanks to the underlying
strength of our core search and ads business,' said CEO Eric Schmidt.
'While we are realistic about the poor state of the global
economy, we will continue to manage Google for the long term, driving
improvements to search and ads, while also investing in future growth
areas such as enterprise, mobile, and display.'
Ads that accompany Web searches and are targeted at online
shoppers, are compelling advertisers to transfer budgets from TV and
print media to the internet. Barclays Capital said that the internet
will account for 8.7 percent of the 284 billion dollars in US ad
spending this year, up from 7.2 percent in 2007, Bloomberg news
reported.
'Google's going to continue to grow at a pace that's faster than
everyone else,' analyst Steve Weinstein at Pacific Crest Securities
in Portland, Oregon told Bloomberg. 'They have a very profitable and
still very rapidly growing core franchise in search.'
In the company's words: 'Google is the closest thing the Web has
to an ultimate answer machine.' Its name is a play on the
mathematical term 'googol,' for a 1 followed by 100 zeros, and
reflects its mission to organise the vast amounts of information
available on the Web.
USA
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