Although the offline world has been seeing a downturn in economic forecasts, with regular negative announcements being the norm with big business these days, Google has come out and said that they have made a 26% jump in net income (to US$1.35 billion) and have seen their shares rise 14% in the last two weeks.
Google’s chief executive, Eric E Schmidt said:
…the results reflected marketers’ acceptance of a system that is better and more measurable than other forms of advertising.
With many other forms of advertising suffering in the economic downturn, online advertising has emerged as the most cost effective method of reaching a target audience. As more businesses cut television advertising from their budgets, the cost of individual television ads is rising sharply. As the average consumer looks for methods to save money, doing research online for savings will increase, highlighting the importance of an effective online marketing system.
For more information on Google’s financial aspects, see the original NYT article.