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  (Source: all-about-seo.ca)
Google reported net income of $2.79 billion ($8.42 per share)

Google's Q2 2012 financial results are looking good despite certain issues like falling ad prices.

For the period ended June 30, 2012, Google reported net income of $2.79 billion ($8.42 per share). This was a jump from the year ago quarter, which was $2.51 billion ($7.68 per share).

The company's earnings would have been $10.12 per share if it wasn't for the $12.5 billion Motorola Mobility acquisition and Google's accounting costs for for employee stock compensation. Wall Street analysts expected around $10.10 per share.

Google's revenue climbed 35 percent from a year ago to $12.21 billion in Q2 2012. Without Motorola, revenue would have climbed 21 percent and stood at $8.36 billion (minus the ad commissions to advertising partners).

"Google standalone had a strong quarter with 21% year-on-year revenue growth, and we launched a bunch of exciting new products at I/O – in particular the Nexus 7 tablet, which has received rave reviews,” said Larry Page, CEO of Google. “This quarter is also special because Motorola is now part of the Google family, and we’re excited about the potential to build great devices for users.”

Google's latest earnings report is result of its ability to better target advertisements to its audiences. It has figured out the way to direct ads in an appealing way, and this is made evident in the surge of ad clicks through the quarter ended June 30. Ad clicks increased 42 percent from the same time period last year, which is the highest annual increase since Google started reporting the volume of its ad clicks four years ago.

While ad clicks are up, ad prices have taken a pretty steep fall. The average price per click dropped 16 percent in the last quarter from the period a year earlier. The reason for this decline is that ad prices for clicks on mobile devices like smartphones and tablets are cheaper than on desktop PCs, and the trend is leaning toward increased mobile use.

Another problem Google encountered was Motorola Mobility, which reported an operating loss of $233 million on revenue of $1.25 billion. Google acquired the company just 39 days before the end of the quarter.

Despite some small troubles, Google has been doing quite well for itself with popular products like its Android mobile operating system and its latest tablet launch, the Nexus 7. The ASUS-built Nexus 7 has been a hit since its release, selling out in many brick-and-mortar as well as online retailers in a matter of days.

Source: Google



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Google trends
By Tony Swash on 7/21/2012 10:22:31 AM , Rating: 2
quote:
Google's latest earnings report is result of its ability to better target advertisements to its audiences. It has figured out the way to direct ads in an appealing way, and this is made evident in the surge of ad clicks through the quarter ended June 30. Ad clicks increased 42 percent from the same time period last year, which is the highest annual increase since Google started reporting the volume of its ad clicks four years ago.

While ad clicks are up, ad prices have taken a pretty steep fall. The average price per click dropped 16 percent in the last quarter from the period a year earlier.


Revenue per click was not only down a whopping 16% year on year this quarter. The previous quarter it was down 12% year on year. The one before that down 8%. There appears to be a trend down and it appears to be accelerating. This is not that surprising as all the evidence strongly indicates that ad revenues per user on mobile devices is much lower than per desktop user and so the trend away from internet access via the desktop and towards access via phone and tablet will tend to to cause a deterioration in Google's business.

And yet Google's advertising revenue was up. How did they do that? Total ad clicks jumped 42%, because the search results are more and more ads and less and less genuine results.

See this graphic comparing a 2008 Google search result vs a 2012 Google search result.

http://www.brianshall.com/sites/default/files/goog...

But obviously they can't continue to increase the advertising density indefinitely, which means this is a one-time boost that masks the underlying deterioration of dollar-per-click. Once that's baked into the year on year the problem will be exposed.

By increasing the ad density they are selling the future in exchange for the temporary illusion of prosperity.

And of course Androids remains a non-profitable cost center for Google.




RE: Google trends
By sprockkets on 7/21/2012 6:52:51 PM , Rating: 2
When your source is a dumbass shill with an axe to grind against google, no one is going to take you seriously.

In your own words, "Tough Sh_it."


RE: Google trends
By Tony Swash on 7/22/2012 5:42:27 AM , Rating: 2
The problem with insulting the bearer of bad news is that the bad news does not go away. Covering your eyes doesn't make the monster disappear.

Your mission, should you choose to accept it, is to show that my figures are wrong, or the trend I noted in those figures is wrong, or the trend to more ads and less and less genuine results in Google search is wrong.

But be warned accepting this mission may mean using parts of your anatomy you haven't used for quite some time, it may hurt a little.

To help here are some useful links

http://gawker.com/5902386/no-one-can-correctly-goo...

http://thenextweb.com/google/2012/07/17/google-ad-...

http://articles.businessinsider.com/2012-04-30/tec...

http://searchengineland.com/too-many-ads-above-the...


RE: Google trends
By Cheesew1z69 on 7/22/2012 5:49:57 PM , Rating: 2
Quite funny because one of his go-to guys was found out for being a shill for Oracle...lol


RE: Google trends
By Tony Swash on 7/22/2012 6:30:47 PM , Rating: 2
Still no one disputing the figures or facts from my post I see.

Jeez guys - make an effort!


By quiksilvr on 7/21/2012 12:08:16 PM , Rating: 2
I feel that Google has a clear opportunity to not only be free from the shackles of the cellphone companies, but also have better control on the fragmentation of their OS.

Nexus 4: 4" Smartphone made by HTC
Nexus 5 (basically the Galaxy Nexus): 5" smartphone made by Samsung
Nexus 7: Asus
Nexus 10: Motorola

Get the big four to made a streamlined lineup and stop the madness.




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