Internet giant Google, Inc., has disclosed its first-quarter profits, which rose by 69% to $1 billion or $3.18 per share. Its revenues also increased by 63% to $3.66 billion. The company attributed these increases to its global advertising sales. Google has also annexed a huge portion of its market share from Yahoo. After this year's first-quarter earnings were reported, the price of Google's shares rose by 3.1%. The company has become the center of the Internet's largest marketing network, and its core business now encompasses advertising of all types. It is also making an effort to identify the best ads to display alongside search results, which will boost revenue-generating clicks. Paid clicks on ads within Google's network increased by 52% in the first quarter. Most of the clicks occurred on Google's own websites, increasing the company's profits. Chief Executive of Google Eric Schmidt said his company's success is the result of its steadfast focus on "end-user happiness."
AOL implements new strategy for raking in ad revenue
AOL is trying out a new approach in an attempt to lure advertisers. The company is now "busy touting the benefits of the expensive stuff made by pros—stuff that looks a lot like television," according to a Forbes.com report. AOL took a step in this direction last year when it launched "Gold Rush." This promotion, which was designed as a seven-week interactive treasure hunt, drew 11 million active viewers. It was created by Mark Burnett and sponsored by top-notch companies, including Coca-Cola and General Motors. AOL now has in the pipeline four more ambitious projects designed along the same lines by DreamWorks Animation, Telepictures, and Endemol USA. AOL has taken this new approach because it has realized advertisers want to project content similar to what viewers see on television. Therefore, it has opted to enlist the services of media companies to attract advertisers. However, if AOL's campaigns are unsuccessful, the company will face difficulties. Currently, AOL is in the process of relieving itself from its subscription services and becoming completely dependent on advertising revenue.
Major business journal hires new advertising director
John Hock will now lead the advertising department of the Dayton Business Journal as its advertising director. Hock has vast experience in sales, training, and management and is eager to join Dayton's professional advertising team. Hock joined the journal in March and, prior to that, worked for its advertising department in Colorado Springs. Neil Arthur, publisher of the Dayton Business Journal, is confident that Hock's experience in the field will be an asset to the company. The Dayton Business Journal is one of NC-based American City's 41 weekly business publications.
AT&T marketing chief Marc LeFar steps down
Marc LeFar, who had overseen AT&T's $1 billion-plus marketing-division budget since its takeover of Cingular Wireless, recently resigned from his post. The move, which has come just weeks before the launch of the Apple iPhone, evidences growing turmoil among industry players. The first major shakeup came when T-Mobile's CMO, Mike Butler, left the company in February. Another major player, Verizon Wireless, is in restructuring mode, as its marketing head has taken over another seat within the company. AT&T spent nearly $2 billion on marketing last year. There were rumors that the company was firming up plans to incite a shakeup among marketing agencies. An AT&T spokesman who revealed the name of the company's new CMO, David Christopher, did not divulge details about why LeFar resigned but said he "wanted to do something else." LeFar, too, has been silent. The winner of a Marketing 50 award and named as an Advertising Age power player, LeFar led Cingular through its successful merger with AT&T's wireless brand.
WPP acquires stake in London-based Clemmow Hornby Inge
WPP Group has purchased a 49.9% stake in Clemmow Hornby Inge (CHI), a London-based independent startup agency. The agency nearly closed a deal with Havas before WPP stepped in. Established in 2001 by Simon Clemmow, Johnny Hornby, and Charles Inge, CHI is now eyeing the U.S. market. In fact, its first client, Carphone Warehouse, has an alliance with Best Buy, which has necessitated CHI's move to commence operations in the U.S. Clemmow Hornby billed $276 million in 2006, climbing to the 16th position in the UK rankings. The agency's revenues for the year that ended on June 30, 2006, were $37 million. Its clients include big names such as Toyota, Argos, and British Gas.
