NEW YORK Continuing to defy expectations, online search engine Google has reported an increase of 70 percent in Q3 revenue compared with the same period last year.
The numbers came just 10 days after the company spent $1.65 billion to acquire the online video site YouTube [Adweek Online, Oct. 9].
"Our third quarter results are a testament to the strength of our network of advertisers and partners, as well as our continuing focus on users," Eric Schmidt, CEO of Google, said in a statement. "We continued to forge significant partnerships with companies such as eBay, Fox Interactive Media, and Intuit that will be of great value to all involved."
The Mountain View, Calif., company reported revenue of $2.69 billion for the quarter ended Sept. 30, compared to third-quarter 2005 revenue of $1.58 billion.
Google shares jumped $6.75 to close Thursday at $426.06 on the Nasdaq, and then rose another $31.94, or 7.5 percent, in after-hours trading.
By the end of 2006, Google is expected to command a position of leadership rarely seen in the media world—25 percent market share [Adweek Online, Oct. 18].
So says Web researcher eMarketer, which released new growth estimates for the online ad space on Tuesday. According to eMarketer, Google will see its ad revenue soar to more than $4 billion by the end of the year—a number that matches the record ad spending pulled in by the entire industry during the most recent second quarter, and roughly a quarter of the $16 billion predicted for Internet advertising by eMarketer for 2006 overall.
In 2005, Google and Yahoo each pulled in roughly $2.4 billion in ad revenue. This year, Google is leaving its top rival in the dust, as revenue is expected to surge by nearly 65 percent versus 17.5 percent growth predicted for Yahoo.
—Adweek staff report