23 October 2006

Google continues a winning streak at Yahoo!'s expense

During the business quarter leading up to the end of September, Google have continued to show their almost total dominance of the UK and US market sectors, with profits rising by 92%, from $381 million last year to a record $733 million.

Comparatively, Yahoo! has reported their third quarter profits sliding by 32%, from $253 million last year to $158.5 million this year. The figures come a week after Google announced its takeover of the viral video and marketing company, YouTube, for $1.65 billion.

Google chief executive Eric Schmidt had the following to say on his company's continued meteoric success:

"Our third quarter results are a testament to the strength of our network of advertisers and partners, as well as our continuing focus on users."

Due to Google's immense search marketing power, their pay-per-click campaigns have a greater market force than for any of their rivals, and the earning power of these campaigns is far in excess of other search engines like Yahoo!, MSN, and Ask.

The latest financial results have substantially exceeded market expectations, and the common opinion amongst analysts is that Google is unlikely to lose their favourable position in the market any time soon - particularly with its ever-widening portfolio of products and the new advertising avenues it offers.

Yahoo! chairman Terry Semel was somewhat less optimistic on the performance of the Yahoo engine, and has offered hope for a turnaround next year by returning to a "back-to-basics" approach. Semel told market analysts:

"I am not satisfied with our current financial performance, and we intend to improve it. We are not exploiting our considerable strengths as we should be."

Yahoo promises further optimisation of their engines and a redesigned pay-per-click management system in order to boost hopes of a recovery in the coming months.

The continued loss of market share to Google has battered investor confidence in Yahoo!, with its share price dropping 38% over the last year. Conversely, the Google share price has continued to grow, with a rise of 7% since the profit report was issued.

Home | Careers | RSS | Contact Us | Newsletter

International sites: