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Friday, July 20, 2012
Ad Business Help Google's Quarterly Results

Google said second-quarter revenue surged 35 percent, helped by its acquisition of Motorola Mobility and as more users clicked on advertisements.

Including Motorola Mobility, sales were $12.2 billion, compared with $9.03 billion a year earlier, Google said on its website yesterday.

Google's Internet business increased revenue by 21 percent in the second quarter, the company said. Google added revenue for its existing Internet business totaled $10.96 billion in the quarter, up from $9 billion a year earlier.

Google controls more than two-thirds of the U.S. search market, according to ComScore Inc., and its sales are tied to the number of times Web surfers click on ads that run on its pages and partner sites. The number of such clicks rose 42 percent last quarter.

Responding to investors' questions, Google Finance Chief Patrick Pichette said the company was still in the process of evaluating every business and division of Motorola.

Google is also using Android smartphones to help drive mobile advertising, a new area of growth.

The company is also pushing into display advertising, which includes graphical banner ads, on desktops. Google is expected to grab 16.5 percent of the U.S. market this year, trailing No. 1 Facebook (FB), which should have 16.8 percent, according to EMarketer Google will assume the top spot next year with a 20 percent share, EMarketer projects.

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