Google Cries Poor In Australia, Loses Money!

1-googleGOOGLE, which takes more ad money from the travel industry than any other company in history, claims to be operating at a loss in Australia despite having 90% market share.

It’s one of several anomalies highlighted by in a report Julian Lee from the Sydney Morning Herald using Australian Securities and Investment Commission figures.

Anomaly 1: Google says it grossed just $A90m in Australia last year. Yet it has more than 90% share of the paid search market, which is estimated by leading industry figures to be worth $A870m in 2008. Do the math.
Anomaly 2: Google reported a loss of $A6.2m in Australia for 2008. It also lost money in 2007. Meanwhile the search market is going ballistic and everyone’s complaining about search inflation. Huh?
Anomaly 3: Google paid Australian tax to the Australian Government of $A3.9m in 2008 – less than some of its Australian clients would pay them each year for search advertising, and also less than its “travel and entertainment” bill of $A4.6m.

The industry reckons Google will take more than $1 billion from Aussie advertisers this year. Wonder what Google will report? Meanwhile, the company refused to explain the discrepancies. Travel Trends: May 25, 2009

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