Google: 95 Percent of Revenues Come From Advertising
By Anna Johnson on October 18th, 2010Google has just reported impressive revenues and profits for its third quarter ended September 30, 2010. With 95 percent of its revenues coming from advertising sales, the results confirm that, above all else, Google is an advertising company.
Google made $7.29 billion in revenues for the third quarter (23 percent higher than the third quarter of 2009). The company’s operating income was $2.55 billion (also up by 23 percent) and net income was $2.17 billion (up by 32 percent over the previous year).
Google said its own sites generated revenues of $4.83 billion, or 67 percent of total revenues. Google Network Revenues – revenues earned through Google’s AdSense programs – reached $2.20 billion, or 30 percent of total revenues, in the third quarter of 2010. This was 22 percent higher than in the third quarter of 2009.
Based on its revelation that traffic acquisition costs were 26 percent of advertising revenues, it follows that $6.96 billion or 95 percent of Google’s revenues were from advertising sales.
