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Google grows revenue 23 per cent in Q1

Juan Carlos Perez | April 16, 2010
The Internet company pledges strong investments in its core and emerging businesses

Google-owned sites generated 66 percent of its revenue in the quarter, while partner sites accounted for 30 percent. Fifty-three percent of total revenue came from outside of the U.S.

People clicked 15 percent more times on Google search ads compared with the same quarter in 2009, while the average fee Google charges advertisers per ad click increased about 7 percent. Google makes most of its revenue from pay-per-click (PPC) search ads.

As Google has been pledging for years, officials again said the company is hard at work trying to diversify from the PPC text ads upon which it has built its empire. Susan Wojcicki, vice president of product management, said Google is targeting areas like mobile, display and search.

"We see a lot of opportunity to innovate in these categories and make the ads better and more useful. As we expand to new kinds of inventory beyond search, our goal is to enable high-performance, cross-media campaigns from within AdWords," she said.

For example, Google has started mixing photos, videos and additional information like stores and prices into search PPC ads, she said.

Google CEO Eric Schmidt, who is usually quite vocal on the earnings calls, was not present for the call this quarter.

As of March 31, Google had cash, cash equivalents and short-term marketable securities worth $26.5 billion.

Google grew its global staff to 20,621 full-time employees from 19,835 full-time employees during the first quarter.

Google officials said that as the economy has rebounded, and online advertising along with it, the company has stepped up hiring, especially engineers, to boost technology development. Google is also looking to acquire companies.

Regarding its $750 million AdMob acquisition, Google officials said they feel certain the deal will not be blocked by U.S. regulators. The Federal Trade Commission has reportedly been assembling a team of litigators who may try to block the deal.

 

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