by Stacy
17. October 2008 15:26
Google today announced its revenue figures for Q3 and, despite the global economic crisis, along with the recently reported dip in share prices, the company has reported revenue of $5.54 billion. This represents an increase of 3% on Q2 of 2008 and a 31% increase on revenues for the same quarter in 2007.
This announcement has surprised analysts, many of whom predicted that Google stocks would fall below $300, the lowest level since 2005 (share price in fact rose 4% to $353.02 by the end of trading on Thursday).
One explanation for such positive results is simply that advertising on Google is simply too effective for the recession to cause companies to pull out of their Google PPC advertising campaigns. With search continuing to be one of the most transparent and cost-effective advertising mediums for the majority of businesses, it makes sense that advertisers are pulling spend out of traditional media ahead of PPC.
Nevertheless, Google Chairman Erik Schmidt remained cautious following the news, admitting Google is not immune to economic conditions and stating that the company is in 'unchartered conditions' and should plan for the long term.