Do Google Trees grow to the Google sky?
On the topic of dadiaries, we've had a couple of rough nights at my house. Mathew was up all night last night (with Phyllis) and I was up all night the night before with Nicky. So if this entry seems a little waivering and erratic, well put it down to weariness while blogging, or (to coin a term) "blearging".
Anyway, do Google trees grow to the Google sky? Based on yesterday's quarterly financials from Google, in a word, "Yes." These are stunning results, with q-over-q revenue up 101%. While, of course, trees do not grow to the sky (even if they are Google trees), it is clear that Google's growth will continue at a reckless rate for quite a while. It also seems apparent to me that Google will become the single most important force in advertising full stop in the whole wide world.
The results break down Adsense revenue ($490M) which corresponds to sales from sites not owned by Google (like our very own sponsor, Braintique). This compares to revenue from Google own properties, mainly I suppose www.google.com, of $530M (so a ballpark of fifty-fifty). These are quarterly numbers(!), and there are offseting expenses such as traffic acquisition costs.
But there's no real breakdown of how much of revenue came from selling keyword linked advertising (Adwords) as opposed to other sources (for example, licensing search appliances to the enterprise). My guess is that Adwords is a huge contributor, upwards of 75% - and with both demand and rates growing there's no end in sight.
Posted by Harold Davis at February 2, 2005 10:08 AM
