Is there a more dominant business in its market than Google is today? The word ‘giant’ is over used to describe the size of companies but in Google’s case is seems inadequately small. So let’s say the galaxy-sized company this week reported record quarterly profits of a £1 billion, up 27% on the same period in 2008.
The news reflects the fact that Google continues to be on the up. Microsoft’s Bing briefly made a small dent but seems to be on the decline again, while Yahoo is struggling with a fight back (adverts have started appearing on British TV!). However, many think that their efforts are for nought because Google’s dominance is entrenched.
And don’t be fooled that this is just the result of critical mass. Despite its lofty position, Google is not resting. It continues to innovate to keep its offering fresh and relevant to its user’s requirements today.
The firm has recently added social media posts to its search returns to provide an enhance range of results for users and soon it will introduce electronic books. Furthermore, Google has undertaken a great deal of research into the effects of speed on the user experience, finding that faster is better.
In addition to all of this, Google’s impressive profits boost is also a reflection of a strengthening advertising market. Across the world online has been the only growth sector in the advertising market during the recession, while in the UK it has just overtaken TV for total spend. So with Google’s dominance of the pay per click sector, the future continues to forecast rising profits.