Saturday, October 17, 2009

Bubble Boy


By now, along with the boy-in-the-hot-air-balloon hoax, you have probably heard that Google third-quarter earnings beat the street, indicating, as the Times put it, "Consumers are loosening the grip on their wallets and advertisers are trying to get their attention -- at least on the Internet." But, unlike like bubble boy, this is big news, and therefore deserves a second, third, and even fourth look.

The Times, for one, took the news as "the latest sign that the global economy may be on the mend."

"Investors that may have been skittish before, perhaps doubting the resiliency of Google in the recession can now relax,"


Google CEO Eric Schmidt, for his part, felt confident enough to declare the worst of the recession over, before reiterating recent comments to the effect that Google's ready to begin a new phase of investment, hiring and acquisitions.

Explaining that "the company's ad clicks serve as a kind of barometer of consumers' willingness to spend," reported that two important indicators of ad market health improved: the number of paid clicks, which include clicks on ads served on Google sites and its partners, and the average amount paid to Google per click. "Both measures improved from the second quarter."

Likewise, wrote Andy Beal on his Marketing Pilgrim blog, "If Google is any litmus test for the state of the US economy, the worst recession in 70+ years is now firmly behind us."

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