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03

Google

   
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Title: Google
 
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Subject: Business
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Date: January 25, 2004
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Length: 3 / 705
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This is called advertising on Google website. The second type of advertising is the text and image ads that one sees on various web pages. The revenue that google makes on such ads is called Google Network websites. Now since the revenue on Google Network Websites is shared with the website publisher as well; the operating margins are lower on Google Network websites than on Google websites...
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This will further be clear if one understands that the percentage of revenues from Google Network websites as a percentage of total revenue is increasing. While it was just 25% in 2002, it grew to 44% in 2003 and 49% in 2004. The operating margins are going to go down going forward...
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