The company also has trimmed some employee perks, Patrick Pichette, chief financial officer, said at an investor conference in June. Google closed some cafes and eliminated free water bottles. The company continues to be “prudent” about its costs, he said at the time.
Google’s share of the U.S. Internet-search market was unchanged last month at 65 percent, according to ComScore Inc., a research firm in Reston, Virginia. The company managed to ward off an attack from Bing, a new Microsoft Corp. search engine backed by a broad marketing campaign.
Microsoft, based in Redmond, Washington, increased its market share to 8.4 percent, from 8 percent the previous month, ComScore said. Sunnyvale, California-based Yahoo! Inc., which ranks second in the market, dropped to 19.6 percent in June from 20.1 percent.
“We believe Bing will have little to no long-term impact to Google’s business,” Gene Munster, an analyst with Piper Jaffray & Co. in Minneapolis, said in a note to investors.
New Features
Google continues to add its own search features. The company announced plans in May to make it easier for Web surfers to customize query results. Users can now limit searches to a certain time frame and filter the kind of results they get.
Online advertising, which makes up most of Google’s sales, is outpacing print and television ads. The Internet-ad market may grow 10 percent this year, while the overall industry shrinks 8.5 percent, according to ZenithOptimedia Group in London.
With Internet-search advertising, marketers only have to pay when someone clicks on an ad. That helps cost-conscious advertisers get the most for their money, Squali said.
“Search is performing well for advertisers in this economic environment,” he said. “Marketers are looking for performance-based media, and search is it.”
Google is seeking fresh ways to attract users to its search engine and other online services.
Earlier this month, the company said it would offer computer makers a free operating system called Chrome OS. The software, available next year, will be designed for users who go to the Web to work on documents, calendars and e-mail. That contrasts with Microsoft’s traditional approach of keeping most software on computers’ hard drives.
To contact the reporter on this story: Brian Womack in San Francisco at Bwomack1@bloomberg.net Last Updated: July 16, 2009 16:10 EDT
Bilibala comments
Revenue really slow down to only 3%, although i don't know how much of it is due to US dollar rise. One the other hand, Google really did a great job in expenses management this year.
I will keep my target price at $1,050 (6 year from now)
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