Ad Demand

By Matthew Hicks  |  Posted 2004-10-21 Print this article Print

From its AdSense program, where partner sites display ads, Google gained 48 percent of its ad revenue, or $384.3 million. Google doesnt keep all of the money it gains from clicks on ads on partner sites. About 79 percent of the revenue from partner sites was returned through revenue sharing. Google executives acknowledged in the conference call that some financial analysts are concerned about the companys reliance on advertising. But they said demand for search-based advertising continues to be strong. "We do know that the amount of demand that exists for the kind of advertising we do is quite large and not met," Schmidt said.
Financial analysts repeatedly asked Schmidt, co-founders Larry Page and Sergey Brin, and chief financial officer George Reyes about the direction of products and the companys approach to gaining revenues from new offerings such as its Froogle shopping search, Gmail e-mail service and desktop search.
Read more here about Google Desktop Search. They offered few new details about when any of their new offerings will move out of beta or significantly contribute to earnings. Schmidt said Google focuses first on meeting an end-user need with beta products before determining the revenue model. Asked whether Google will become more like a Web portal, such as rival Yahoo, Schmidt ruled out such a move. "Were not going to announce a portal strategy because were not going to do that," Schmidt said. Check out eWEEK.coms Enterprise Applications Center at for the latest news, reviews and analysis about productivity and business solutions.

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Matthew Hicks As an online reporter for, Matt Hicks covers the fast-changing developments in Internet technologies. His coverage includes the growing field of Web conferencing software and services. With eight years as a business and technology journalist, Matt has gained insight into the market strategies of IT vendors as well as the needs of enterprise IT managers. He joined Ziff Davis in 1999 as a staff writer for the former Strategies section of eWEEK, where he wrote in-depth features about corporate strategies for e-business and enterprise software. In 2002, he moved to the News department at the magazine as a senior writer specializing in coverage of database software and enterprise networking. Later that year Matt started a yearlong fellowship in Washington, DC, after being awarded an American Political Science Association Congressional Fellowship for Journalist. As a fellow, he spent nine months working on policy issues, including technology policy, in for a Member of the U.S. House of Representatives. He rejoined Ziff Davis in August 2003 as a reporter dedicated to online coverage for Along with Web conferencing, he follows search engines, Web browsers, speech technology and the Internet domain-naming system.

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