NEW YORK (AdAge.com) -- Google had another quarter of robust growth, with profit climbing 46% in third quarter, vs. the same period in 2006, driven mostly by its continued dominance of the lucrative search market.
Net income for the third quarter of 2007 was $1.07 billion, or $3.38 per diluted share, vs. $733 million ($2.36 per diluted share) in third quarter 2006.
Boost in search share
Despite Google's massive penetration, it continues to add to its share of the search market: According to ComScore data, Google's share rose a half percent, from 56.5% to 57% between August and September.
However, the executives on Google's earnings call were also quick to emphasize their work in Google's other areas of advertising and business.
Co-founder Sergey Brin talked about some Google clients who are beta testing a conversion optimizer, which lets advertisers specify how much they'd like to pay for a customer and Google automatically optimizes the bids to facilitate that. Google also is testing a website optimizer, which allows site owners to use A/B testing to determine the optimal layout of their sites.
Mr. Brin also touched on Google's offline efforts and touted the measurement and accountability aspects of its TV advertising deals. "TV is the closest to internet-level accountability, and we feel we can bring much greater ROI accountability to television advertising much as we've done online," he said. Google currently sells Echostar TV inventory.
Mr. Brin cautioned that the amortization of the company's $1.6 billion October 2006 YouTube purchase is "not the number one priority for that property right now. We continue to grow the traffic and improve the user experience; we continue to really improve the publisher experience, and also we're working at things like the fingerprinting, which we announced recently ... [and is] really fantastic technology for us."
The company tiptoed around a question about the potential of and timing of its DoubleClick acquisition closing.
"We are following all of the appropriate steps that we needed to get worldwide approval and we're certainly optimistic, but it would be premature for me to suggest any particular timing ... but we believe it will also going to result an very good outcome for us," said Mr. Schmidt.