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Google’s strong fourth quarter revenue growth beats expectations

Leading internet search engine Google’s newly released revenue figures for the period between October and December 2012 have surpassed many industry predictions by showing a net total of $9.83 billion (£6.2 billion) – an increase of $1.7 billion over the same period in 2011.

According to analysts, Google’s finances have been boosted particularly by its in performance in the international marketplace.

Google itself has also drawn attention to what the company claims is an increasing take-up by marketers of its portfolio of online advertising opportunities – including display, mobile and video advertising.

In addition, the company says that its recently introduced product listings service – which offers internet browsers more detailed search results on particular items – is also performing well.

Although no detailed figures have been released by Google on the relative performances of each of its advertising services, it says that average pay per click rates are not declining to the degree they were in the previous quarter of 2012.

According to Google, average pay per click rates for the final quarter of 2012 dropped by just 6% compared with the same period the previous year. The corresponding year-on-year decline for the July to September period was 15%.

Some commentators have pointed out that Google’s declining average pay per click rates may have been partly precipitated by the increasing use of smartphones for web browsing, since Google currently charges lower rates for advertising activity over mobile networks.

Meanwhile, continued trading losses for Google’s Motorola Mobility mobile phones did not appear to have dampened enthusiasm among analysts regarding Google’s overall performance.

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