Continuing to leave its online search and advertising competitors in the dust, Google on Thursday reported a 57% jump in third-quarter revenue to $4.23 billion.
Of that, $1.22 billion went directly to affiliate sites, which get a cut of revenue for hosting Google’s contextual ads.
Fast-rising costs kept earnings growth at a lower, but still impressive, 16% from the year-earlier quarter to $1.07 billion.
Netco made 65% of its revenue, all of which comes from advertising, on its own websites, such as its core search engine, GMail and YouTube; 34% came from affiliate sites that run Google’s ads.
Other portals, such as Yahoo and Microsoft’s MSN, are investing in their advertising and search capabilities in an effort to achieve growth rates closer to Google’s. Yahoo recently reported a 12% increase in revenue to $1.77 billion for the third quarter, while net income fell 5% to $151 million (Daily Variety, Oct. 17).
Investors considered Google’s continued strong growth rather ho-hum as shares were flat in after-hours trading. Before earnings came out, they were up 1% at $639.62.