Avatar Posted by SueLynn 93 days ago (http://www.domainnews.com)
Category: Everthing Else On Domains | Tags: google yahoo advertising margin

For the past few days I've been trawling my way through global Internet reports, advertising reports and through the last five years of Google annual reports. In fact, I think that I'm nearly reported out. After reviewing the recent Google quarterly report it can clearly be derived that Google is continuing to adopt a very aggressive strategy of cutting off Internet traffic from competitors.

Since the beginning of 2006 Google has been progressively reducing its network traffic margins from a high of 22.1% (Q1 ‘06) to low of 11.9% (Q1 '08).

During this same period Google has reduced the advertising margin on its own sites from 40.8% to 39%. Although 1.8% doesn't sound like much when you're dealing with a revenue line of $5.09 billion for last quarter then that 1.8% becomes $91.5 million which is more than the annual revenue line of most domain parking companies.
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