A lot of numbers relating to earnings, revenues and search advertising have just went out for all of us to consume. First we have this report from Efficient Frontier saying Google’s share of the search ads for the Q2 has reached 77.4%. Comparing Q2 2007 data with that of Q2 2008, showed a 2% increase, while both Yahoo and Microsoft falling at 2%-17.8% and 4.8% respectively.
This is somewhat validated by Google’s Q2 earnings report which showed a 39% in revenues from Q2 of 2007 and a 3% increase from 1Q of 2008. Google’s reported total revenue for Q2 was at $5.37 billion. For us ordinary citizen of this so called web, that may seem too much of a revenue, but apparently for Wall Street analysts Google’s revenue is way too short of their expectations. Expectedly, Google’s stocks went dow to as much as 12% after the announcement.
Of course, stocks plummeting is nothing new to Google, and they could always put the blame on the current economic condition as the reason for not meeting the revenues expected of them. The Efficient Frontier report as well as Google continued dominance in the search market reports from other research firms, should serve as a real gauge for how Google’s standing should be looked at.
The reality is, despite the economic downturn, search engine advertising is still a viable business, and continues to be Google’s formula for success. And that is why, competitors would do anything to shake off Google from its current position, no matter what it takes.