How Google Innovations have driven more profit

Last week Google announced their latest financial results of the quarter.  And they had an incredible quarter, their best yet. So what’s behind the improved result?

If we look at revenue across Google owned websites it rose a stellar 12%, comparing q4 2010 to 2009 versus q4 2009 to 2008. Google Network revenues only grew 1% comparing q4 2010 to 2009 versus q4 2009 to 2008.  So it looks like the growth in revenue is coming from Google owned websites, for example google.com and google.co.uk.  That’s revenue from their cored business Google Adwords.

So what’s driving this?  Well, we are out of the worst of the international recession (perhaps not in the UK) but Google is also doing more to drive revenue from their core business model Google Adwords. This is through a few things:

1: Inflation in cost per clicks

2: New advertising extensions (e.g. product extensions showing pictures of products, and map extensions showing maps – both of which draw the users attention). These draw more clicks to Google because they provide more interactivity for the user and take real estate away from the natural lists

3: Innovations like Google Instant making it easier to search, and therefore driving more clicks again

All in all, greater innovation from Google, and promoting Google Adword’s PPC results over natural SEO results, have heavily supported Google’s success.  Eric Schmidt is now stepping down as CEO of Google, making way for cofounder Larry Page.  He leaves behind an all-time best quarter’s performance.  I wonder how Larry will do?

Cheers,

Sri

Search Marketing Opportunities in 2011 – our latest seminar

Yesterday we held our first Net Media Planet invites seminar of 2011!  It was another great breakfast session with clients, potential clients and partners, including Google.

These seminars have given us an excellent opportunity to present and share our insights and ideas to maximise performance in the fast-changing world of online marketing.

Yesterday’s session was looking at the opportunities in search and particularly in paid search marketing as we start 2011.  I talked about different areas including where and how search and social come together, how display is becoming a more viable direct response channel through intelligent targeting, and how to drive revenue from mobile as a national and international brand.

2011 is going to be a great year! We’ve got lots of fresh ideas that we’re going to be implementing for our clients and hopefully this morning provides some food for thought.  Please browse through the presentation below (click ‘menu’ to open the presentation in full screen).

Cheers,
Sri

Net Media Planet wins eConsultancy Innovation in Paid Search / PPC award


“An enviable application of technology and marketing insight, which generated incredible results. Both clever and strategic.” – eConsultancy Innovation Award judges

I have just heard that we’ve won the eConsultancy Innovation in Paid Search / PPC award!

This is really fantastic news! At Net Media Planet we work hard to understand how the market is changing; then we come up with innovative ideas to improve client results through ppc and broader marketing. So it feels great to be recognised for this by our industry peers.

It’s also fantastic that we’ve won it working with a client such as The Perfume Shop, who is ambitious, collaborative and really fun to work with.

Well done to everyone at Net Media Planet. We have a great team here and I’m very proud of them, and also thanks to the judges for their great decision!

Cheers,

Sri