Google Revs Hit $9B, Google-Owned Sites Hit $6B

Larry-Page

Google released second-quarter 2011 earnings Thursday. Revenue rose to $9.03 billion, up 32% compared with the year-ago quarter. Profits hit $2.51 billion -- up from $1.84 billion reported in the second quarter of 2010.

This is the second quarter the company reported earnings since Google founder Larry Page took the helm as CEO. In the first quarter, Google reported profits of $2.3 billion on $8.58 billion in revenue, up 27% compared with the year-ago first quarter.

The sites owned by Google generated $6.23 billion, or 69% of total revenue, in the first quarter of 2011 -- representing a 39% increase compared with first-quarter 2010 revenue of $4.5 billion.

Partner sites generated revenue through AdSense programs of $2.48 billion, or 28% of total revenue, in the first quarter of 2011. This represents a 20% increase from second-quarter 2010 network revenue of $2.06 billion.

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Aggregate paid clicks from search campaigns, which include clicks related to ads served on Google sites and the sites of its AdSense partners, rose 18% compared with the year-ago quarter and down 2% from the first quarter of 2011.

The average cost-per-click, which includes clicks related to ads served on Google sites and the sites of its AdSense partners, increased 12% over the first quarter of 2010 and rose 6% over the first quarter of 2011.

Google said traffic acquisition costs -- the portion of revenue shared with Google's partners -- rose to $2.11 billion in the second quarter of 2011, compared with TAC of $1.73 billion in the second quarter of 2010. TAC as a percentage of advertising revenue was 24% in the second quarter of 2011, compared to 26% in the second quarter of 2010.

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