Google has revealed their biggest 3-month profit to date, implying that internet marketing is recovering from the recession.
During the three-month period from July to September, Google unveiled a net profit of $1.64bn (£1bn), a 27% increase on last years July-September figures.
Eric Schmidt, Google’s chief executive, feels that “the worst of the recession is clearly behind us.”
Substantial profits weren’t just limited to Google’s prowess. Computing colossus IBM took a healthy $3.2bn in profits for the same period; an increase of 14% on last year’s figures.
They also provided encouraging figures for their predicted full-year profits, with members of management revealing that they expected to see the economic environment settling down.
Advertising Revenue
Quarterly revenue for Google far surpassed expert analysts’ predictions of $1.29bn, when they announced revenues of $4.38bn.
A spokesman for Google admitted that “because of what we have seen, we now have the confidence to be optimistic about our future.”
Two further advances have recently been made by Google. They will put themselves in competition with Amazon and Apple when they begin to sell electronic books via a new e-books service.
The second advancement was made when Channel 4 reached an agreement to show its programmes through Google’s YouTube website.
Robert Scoble, the highly-respected Technology blogger, believes that “people think of online video when they think of YouTube, but now YouTube is trying to bring in movies and longer-form content, which will let [Google] bring in new advertising that is going to be very profitable for them.”
Big-Brand Advertisers are Back
The recession doesn’t appear to have hit Google quite like other companies that solely deal in advertising, with many analysts predicting that they would one of the first to bounce back from the economic crisis.
Google saw a sharp 3.1% rise of $16.44 to $546.35 on Thursday, a sign that the markets are impressed by Google’s current and future prospects.
Coin Gillis, a senior analyst with Brigantine Advisors, is confident of Google’s strength, stating that “Google has no competition. Yahoo is withering on the vine and [Microsoft's] Bing is too tiny now.”
“They did great on every single metric. We think this is sustainable.”
He went on to state that Google’s current message is very clear and concise; “big brand advertisers are back and they are spending money.”
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