Google Profits, But Where Are The Questions?
Posted on July 24, 2006
Filed Under What's New, Commercial Trends |
I looked around in vain for a blogger backlash to the news that Google’s profits keep on going up.
Google profits more than doubled in its second quarter, racking up net income of $721m, up from $343m a year earlier. “The opportunities before us really are unlimited at present,” Eric Schmidt, Google’s chief executive, told analysts. “It’s another good day and a good quarter at Google.”
When I consider my own Ad Sense revenues I can see why the googler is doubling profits year on year.
More than 99 per cent of Google’s revenues come from advertising, and the company said gross revenues increased 77 per cent on a year earlier and 9 per cent on the previous quarter as it became more proficient at placing ad contextually on its search results pages.
The problem is we make those profits for google and get very little back. Ad sense is always parlayed as a little extra, a little something to cover the cost of the hosting service and then some, but it is a huge, huge business and the real competition is a year away.
There’s also the issue of click fraud. Google acknowledges it. So how much of those profits are derived from fraudulent clicks? This is a timebomb that nobody seems to want to set off.
Google is surrounded by click manipulative software that can propogate sites by the thousands, and its effects populate our blogs comment pages and make being on the web a more tiresome job.
Google could lay claim to being the most successful company of all time, if you say who else went from a standing start to a $10 billion cash pile in a few short years. Still the process is tainted. Miserly returns to its millions of partners, profits boosted by tactics that break the rules. But why does nobody want to take the shine off Google?
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