October 14, 2011- Even with a troubled economy affecting most businesses, Google Inc. announced its sales increased last quarter at a faster pace than in previous quarters. The Internet giant announced a 26% increase in profits for the third quarter over that of one year ago. Revenue for the company jumped 33% helped by record sales in online advertising.
This latest quarter makes four consecutive quarters the Internet behemoth has seen its revenue increase from the same quarter the previous year. After Google released figures, its stock jumped more than 6% in after hour’s trades.
It seems that online advertising has not been affected as much by the global economic problems as other means of advertising. However, changes in the way online advertising is spent often lags behind that of conventional advertising, especially where search ads are concerned.
Ad revenues of U.S. Internet increased to nearly $15 billion in the first six month of 2011. This represented a 23% increase from the prior year. Google was the best performer out of all other companies for online advertising during the recent recession.
Google’s sales head, Nikesh Arora, said some softness in sales was reported in Western Europe but other international markets offset that. Paid clicks, a measure of how often searchers click on an ad, increased 28% in the most recent quarter compared to one year ago.
The company also has seen increases in display ads including video and graphical ads, as they have signed deals worth over $600 million in just the last six months.