IndustryGoogle Profits Rise Driven By Increasing Ad Revenues

Google Profits Rise Driven By Increasing Ad Revenues

Google reported a 4 percent increase in profits for Q1, driven by a steady growth in ad revenues. The company was hurt by the recent strength of the U.S. dollar, however.

Google posted profits of $3.59 billion for the first quarter of its 2015 fiscal year, a slight increase on the $3.4 billion profit in the same period last year. The bulk of the company’s revenue came from advertising at $15.5 billion, an increase of 11 percent since the previous comparable year.

The search juggernaut posted $17.3 billion in overall revenues, up 12 percent year on year. This would have been higher at 17 percent were it not for the adverse effects of a strong U.S. dollar.

Google chief financial officer Patrick Pichette was upbeat on the numbers. “We continue to see great momentum in our mobile advertising business and opportunities with brand advertisers,” he said.

Pichette noted that Google’s video site YouTube has been growing steadily, but for now isn’t as profitable as the company’s highly targeted search ads. “As you know, video ads generally reach people earlier in the purchase funnel, and so across the industry they tend to have a different pricing profile” than that of search ads, he said.

The company also revealed that the amount generated from paid clicks on its websites rose 25 percent, although the aggregate cost-per-click across Google and network member sites decreased by 12 percent.

Google did not make any mention of the antitrust probe in Europe during the call, although this could affect business operations in the future, and could even lead to a sizeable fine.

It also looks like Google will face increasing competition in the mobile and video advertising space, after Facebook’s financials this week showed huge growth in this area.

This article was originally published on V3.


The Ultimate Guide to Forum Link Building in 2020

whitepaper | Analytics The Ultimate Guide to Forum Link Building in 2020

Top 5 SEO Mistakes

whitepaper | Analytics Top 5 SEO Mistakes

Improving SEO & Developer Relationships

whitepaper | Development Improving SEO & Developer Relationships

How to Do Online Competitor Analysis

whitepaper | Analytics How to Do Online Competitor Analysis