PPC AdWords Boosts Google's Revenue To $50 Billion
PPC Giants Google Hit $50 Billion Revenue
Money does grow on trees with Google AdWords PPC ads, the PPC market leader Google reported that its profit climbed and its annual revenue hit an unprecedented high last year as it evolved to stay in tune with people using smartphones and tablets.
"We ended 2012 with a strong quarter," said Google co-founder and chief executive Larry Page. "We hit $50 billion in revenue for the first time last year; not a bad achievement in just a decade and a half."
The fourth quarter profit was up 6.7% from a year earlier at $2.89 billion, and for the full year Google's earnings grew 10% to $10.74 billion. For the year, revenues grew to $50.2 billion.
Google shares jumped more than 5% to $738.20 in after-market trading that followed the release of the earnings figures, which topped most Wall Street estimates.
PPC AdWords Dominates US Market
Google's PPC product, AdWords dominates the US online advertising market, whose revenue grew 14.9% to $10.58 billion in the final three months of last year, according to eMarketer.
The market tracker estimated that Google takes in more than 41% of digital ad revenue in the United States and "holds more share than any other company" when it comes to online, display and mobile advertising.
In a conference call with financial analysts, Google executives stressed how the company is connecting with people on smartphones and tablets, and cautioned that it would take time to get freshly acquired Motorola Mobility on course.
Page said he was excited about the progress Google has made in handling search queries spoken to mobile devices and described the online Play shop for music, books, applications and other digital content as "on fire".
Smartphones Behind PPC Market Leader Revenue Boost
Google's mapping service program tailored for Apple gadgets running on the iOS platform have been a hit, Page said, adding that its search and email programs are also popular on Apple devices.
"We now live in a multi-screen world; in fact, we feel naked without our smartphones," Page said. "Devices have been one of our biggest bets in the last few years, along with the software that goes with these devices."
In an indirect shot at the Apple iPad Mini launched late last year, Page said Google's Nexus 7 "continues to define the seven-inch tablet category."
The majority of Google PPC advertisers are opting to target mobile gadgets, and the company saw successes with experiments tying real-world shopping to smartphones, according to executives.
"Overall, the core search business is doing well, driven really by the growth in mobile," Page said.