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Google Grows, Search Grows

by User Not Found | 4月 16, 2010

Google Logo Yesterday, Google reported its earning for the first quarter of 2010. Its revenue for the quarter was up 23% compared to the same period last year, with total advertising revenue increasing by 21%. Google's US revenue grew by 22%, slightly lower than its overall growth rate. This is clearly a robust performance delivered by Google. In the meantime, comScore released US Search Engine ranking for March 2010 four days ago, indicating a 65.1% search market share from Google in the US, which was only up 1.4% comparing to the same quarter 2009. It is reasonable to assume that the revenue share in the search market is somewhat proportionate to search traffic share, although different search engines could have different cost-per-click and other factors. Surprisingly, we see that now Google's 1.4% increase in the US traffic share has led to a 22% growth in revenue. It isn't that proportionate, is it? Well, it's still proportionate as the overall search market or online advertising market is bouncing back. We've already seen a strong fourth quarter rebound in 2009 in the online ad market mainly owing to the holiday season. Now Google's strong performance has shown that the search ad market is back to rapid growth track. In light of Google's performance, we anticipate that Yahoo!, Microsoft, Ask and AOL will all see their search revenues expanding in Q1 2010. Interesting, Google's stock was trading down massively for 5% after Google's strong earning release. Some analysis say the stock price decline attributes to Google's increasing cost on R&D and hiring, but I'd rather believe that investors's expectations on Google was just too high. They wanted even better results than this impressive one. With all the huge investment in innovation, Google is now under pressure to deliver the results of those innovation faster. Jia Wu Client Reading: Digital Media Index (DMI): Q4 2009
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