Google Finds Bigger Profits With AdSense
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Adsense was among the standouts for Google's stellar earnings results that more than met expectations.
Google's revenues soared by 77 percent to $2.46 billion for the second quarter ending June 30th. Its profit more than doubled to $721 million compared to $342.8 million ($1.19 cents per share), during the same time last year.
"Were very happy to have such a strong quarter in a seasonally weak period for us," Google CEO Eric Schmidt told investors on a conference call to announce the results.
AdSense fueled Googles second quarter growth, CFO George Reyes said, reporting that the products revenue grew 58 percent in the last year and 7 percent since the first quarter.
"Ongoing initiatives to improve the quality of our ads were a significant driver of increased monetization," Reyes said.
Google co-Founder and president Sergey Brin said a key improvement was the decision to display fewer ads next to results for non-commercial searches and more for commercial ones. Looking forward, Brin said Google Checkout was another improvement that though only recently announced, had already seen high early adoption and positive advertiser feedback.
He said Checkout would strengthen the AdSense product by reducing the amount of abandoned checkout carts for Google advertisers, thus making Google advertisements more valuable.
In fact, of all of Googles services introduced over the last year, Google Checkout was the only one that got any real play in the conference call. Conspicuously absent from the discussion. talk of profits were recently announced products such as Google Sketchup, Google Spreadsheets, and Google Finance.