Google doubles revenues
If any more evidence was needed that online search is the place to make money at the moment, Google doubled its revenues it the final quarter of 2004.
For Q4, Google reported record revenues of $1.032 billion – a rise of 101 per cent over the previous year. Of that, money from Googles own sites came to $530 million or 51 per cent of total revenues. Revenues generated via the AdSense programs, where Google ads are placed on third party sites brought in $490 million, or 48 per cent of total revenues.
The numbers far exceeded anything that Wall Street was expecting and the shares rose nine per cent in response. It shouldn’t have been that surprising though given the recent stellar performances both at Yahoo! and MSN.
And best of all, Google doesn’t see any end in sight yet for the kind of contextual advertising which makes the money roll in. The CEO Eric Schmidt said `We believe that large companies world wide have many, many dollars to direct to this kind of advertising. There doesn’t seem to be any price resistance`.