Google Pay Per Click on the rise!

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May 9th, 2008 by Click Consult

At the start of the year there were a lot of reports foretelling the death of Google's Pay Per Click (PPC) Platform, Adwords and Google have silenced all those doubters. Last quarter (ending 31/03/08) profits for the search engine giant were up 30% from the previous quarter.

Profits have been announced at $1.3 bn, with pay per click sales up a huge 42% to $5.2 bn. The volume of clicks on the PPC links has slowed in growth from 25% growth at the end of 2007 to only 1.8% growth in this first quarter. This announcement from Google is also the first occasion that more than half it’s PPC revenue comes from sources outside the US. This demonstrates that the European pay per click markets and competition are growing faster than the US. It would also point to some strong growth in some of the developing e-commerce market, as more businesses take up PPC campaigns and realise the potential of qualified traffic from pay per click.

The strong last quarter performance could shake Microsoft in to taking swifter action in their potential Yahoo take over. If Google’s dominance in PPC advertising continues, Microsoft may find themselves frozen out of the pay per click market completely.

Yahoo are continuing to hold out on the Microsoft bid, serving Google ads for some of their searches. While most see this a toying with Microsoft, proving they do have other options, it is still putting more pay per click sales and revenue in Google’s bulging pockets!

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