Google Announces Record Revenues

Certainly thanks to the significant pay cuts on the part of Google’s CEO and owners reported in this blog back on April 12, 2005 – Google has reported enormous growth over last year. 😉 Reporting first quarter earnings of $1.256 billion, this reflects a 93% increase over the first quarter of 2004.

Predominantly related to increased revenue from paid listings through the AdWords program, this sudden increase (remember, their traffic DID NOT increase by 93%) reinforces a commonly held belief (though not substantiated) that sites that display Google’s AdWords will tend to rank higher in the results.

If we think about it, Google (with it’s shareholders) is in business to make money. Their primary source of revenue is generated from their paid listings and so if they can get those listings in front of more people by rankings sites higher that display them, they will make more money.

This is the logic those that subscribers to the belief that Google favors sites that display AdWords through the AdSense program hold. Not a bad one though I’m not sure I’m convinced. That said, if you check the Beanstalk articles area you’ll notice the conspicuous presence of Google AdWords recently added at the bottom of each article.

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