Comments on: Google Reports Q1 9% Profit Increase But 3% Revenue Decrease http://www.searchenginejournal.com/google-reports-q1-9-profit-increase-but-3-revenue-decrease/9895/ Tue, 14 Feb 2012 22:19:40 +0000 hourly 1 http://wordpress.org/?v= By: Michael Martinez http://www.searchenginejournal.com/google-reports-q1-9-profit-increase-but-3-revenue-decrease/9895/comment-page-1/#comment-1098539 Michael Martinez Fri, 17 Apr 2009 20:32:12 +0000 http://www.searchenginejournal.com/?p=9895#comment-1098539 This earnings report marks a significant change in Google's posture on several key points. Last quarter they suggested that major new capital expenditures were done because they had built up sufficient infrastructure. This quarter they said they were building a new data center in Scandinavia but that weather prevented them from doing much work on it. Also, last quarter they claimed that AdWords is recession-proof. This quarter they backed off that claim and said that advertisers are reducing their spend in different ways. Large advertisers have reduced their budgets and small- to mid-size advertisers have lowered their highest bid prices. Conspiracy theorists in the AdSense community need to take note that Google also said it is reducing costs through operational efficiencies (including a small number of layoffs) but that process is not sustainable. This earnings report marks a significant change in Google’s posture on several key points. Last quarter they suggested that major new capital expenditures were done because they had built up sufficient infrastructure. This quarter they said they were building a new data center in Scandinavia but that weather prevented them from doing much work on it.

Also, last quarter they claimed that AdWords is recession-proof. This quarter they backed off that claim and said that advertisers are reducing their spend in different ways. Large advertisers have reduced their budgets and small- to mid-size advertisers have lowered their highest bid prices.

Conspiracy theorists in the AdSense community need to take note that Google also said it is reducing costs through operational efficiencies (including a small number of layoffs) but that process is not sustainable.

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