Google Increases Profits
When Google announced recently that its last financial quarter profits had surged upwards by 18%, many commentators – and even Google CEO Eric Schmidt – used this as an indication that the end of the recession was in sight. And so it now appears to be.
However, equating Google’s profits – and an increase in its revenue – with a fresh willingness to spend seems to be to regard Google and its customer base in the light of traditional companies and industries. Google is neither a manufacturer nor a service provider in the normal sense. It is really a facilitator. Its increased revenue stems from its core business, which is to bring prospects and sales functions together. As more people use search engines – and Google in particular – as their first step to research on the road to purchase, it is only to be expected that savvy companies and business owners make sure their products and services are easily discovered. That means more businesses invest in AdWords campaigns and SEO. That, in turn, means more revenue for Google.
Whether in recession or not, this is increasingly the pattern of behaviour that drives business. Off-line or on-line. Using the web is cost-effective compared to more traditional forms of marketing, so it is inevitable that a recession drives smart businesses to look at their marketing budgets and ensure they’re getting bang for their buck. Once companies see the success of on-line marketing affecting their bottom line, they’ll continue to spend with Google.
How are you planning to use the web for marketing?
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