Google’s AdSense Margins to be “Squeezed”

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Google’s AdSense Margins to be “Squeezed”

The news sites are buzzing on the mistaken release of figures on AdSense. Stating that profit margins in its AdSense business would “be squeezed in 2006 and beyond.” They issued a retraction of this information;

The statements regarding $9.5 billion in 2006 ad revenue and AdSense margins were not speaker notes prepared for the Analyst Day presentation, and were inadvertently included in the Analyst Day slides. These statements were instead speaker notes prepared early in the fourth quarter of 2005 for an internal product strategy presentation. These notes were not created for financial planning purposes, and should not be regarded as financial guidance. Consistent with past practice, Google is not providing revenue guidance. In addition, the statement with respect to AdSense margins does not reflect Google’s current expectations.

JenSense has here write up here.

We have the forums discussing it as well; a Webmasterworld thread named Google Reveals Margins On AdSense Tightening and a DigitalPoint Forum thread named Google states adsense profits will be squeezed in 2006. Interesting stuff…

Barry Schwartz is the Editor of Search Engine Roundtable and President of RustyBrick, Inc., a Web services firm specializing in customized online technology that helps companies decrease costs and increase sales.

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