Google’s fourth quarter results are in -

“Google reported revenues of $3.21 billion for the quarter ended December 31, 2006, an increase of 67% compared to the fourth quarter of 2005 and an increase of 19% compared to the third quarter of 2006. Google reports its revenues, consistent with GAAP, on a gross basis without deducting traffic acquisition costs, or TAC. In the fourth quarter of 2006, TAC totaled $976 million, or 31% of advertising revenues.”
(from Yahoo News)

Some interesting highlights from the call:

• Google says Pre-roll ads haven’t traditionally worked, and they’re looking for alternatives.
• YouTube will remain its own brand to “preserve the value” of both Google Video and YouTube.
• More prominent checkout logos have increased conversions; consumer adoption of checkout has done better than expected
• Over half of their traffic comes from international locations
• International expansion plus Myspace have put downward pressure on cost per click – not because prices are going down, but because advertisers are using more niche terms
• Monetization has improved, though the percent of queries receiving ads has gone down significantly.
• Over 700 stations are involved in Google’s Radio Ad trial

Discussion:

• Updated: Live Google Call Coverage (Paul Kedrosky)
• Google Q4 2006: Revenue up 67% over 2005 (Google Watch)
• Earnings: Google’s Good 4Q, Revenue Up Significantly

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