Google Surpasses Earnings Estimates

Congrats, Google, on beating analyst expectations. This helps confirm the theory that paid search advertising should be countercyclical, and it’s certainly nice to hear some good financial news, for a change.

Profit was $4.92 per share, beating the street by $0.17. Net income rose 26% over the same quarter a year ago.

This reflects a continued move of advertising dollars from traditional print and media to search. It does not, however, mean that all areas of online advertising can expect to grow. Display advertising is bound to drop as marketing managers further scrutinize their media plans, eschewing brand advertising in favor of direct response.

Now, if Google would just separate true search advertising from their other forms on online ads (such as contextual and display), the industry could make some useful projections.

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