Q4 Search Spend Did NOT Drop

By January 30, 2009 Google News, Search News No Comments

In day 2 of retrospective-post-gazing, I will follow up on my post about the suspected fall in search marketing spend in Quarter 4. Did this come about? What happened really? Google and Yahoo have both posted their Q4 results now, and it seems that all the doom and gloom was for nothing. Both posted increases in profit on both Q3 2008 and Q4 2007.

Of course, ignoring the economic crisis, this should have been expected as Q4is the consumer-crazy period of the year when everyone wants to buy everything retail,  and online marketers would naturally want to be a part of the frenzy by increasing their search visibility.

Google increased their potential to get a piece of this pie by increasing the number of ways in which you could pay for advertising, with new ad spaces popping up everywhere. They also cut down massively on costs , reducing those associated with their many side projects, in preparation for the down turn.

From Googles website, here are some of the actual figures:

Google reported revenues of $5.70 billion for the quarter, an increase of 18% on Q4 07, and 3% on Q3 08.

They also released data on the number of  paid clicks,  including Adsense, which showed they increased approximately 18% on Q4 07  and 10% on Q3 08.

Google’s operating expenses were decreased – they decreased the amount they paid out to their ad-sense partners and also their other operating costs. Notably though, their payroll related costs increased by around 20 million compared to Quarter 3, which is unexpected considering the bad news and cost cutting that has been surrounding Google since October.

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