Google Attracts More Brand Advertisers

NEW YORK Reporting another blockbuster financial performance, Google executives said blue-chip advertisers are increasing their spending on its text listings and newer brand-focused products.

“We’re attracting a lot more business from the Fortune 500 companies,” CEO Eric Schmidt said in a conference call with financial analysts.

Sergey Brin, Google’s president of technology, said the company’s 4-month-old site-targeting product, focused on brand advertisers, is gaining traction. Of Google’s top 100 advertisers, more than 25 have run campaigns, he said. The site-targeting feature allows an advertiser to choose the Web sites for graphical ads to appear, while paying per 1,000 impressions, rather than Google’s typical cost-per-click pricing system.

Google did not experience a slowdown in the third quarter, as it had warned during its second-quarter financial report. Revenue, excluding that shared with distribution partners, was $1.05 billion, more than double a year earlier. Net income was $381.2 million, compared to $52 million in Q3 2004. That quarter included a $201 million charge from Google’s settlement of a patent dispute with Yahoo.

“The engine that really is driving our current economic prosperity is this big sea change that we’ve seen from transitioning offline dollars to online,” said Jonathan Rosenberg, Google’s vp of product management. “And if you look at the relative opportunity, I think what you’re going to see is that there’s going to be significantly more money transitioning into the pay-per-click model that we’ve evolved.”

Rosenberg said Google has seen success “moving into the brand budgets with the big Fortune 500 customers,” noting Paramount Pictures used multiple Google services to promote Hustle and Flow.

“The transition to accountable media is happening,” said Omid Kordestani, Google’s senior vice president of sales and business development. “The interest [from] the spectrum of advertisers, from local advertisers to the large Fortune companies, is happening.”