Google Internet Ad Grows at a Slow Rate

Internet giant Google Inc. reported a weak growth on its ad sales during the second quarter as advertisers remained apprehensive to boost their spending amidst financial crisis.

According to Google’s quarterly-report, its ad revenue grew just 3 percent, a slow growth which disappointed investors.

After the results were released, the company’s shares fell by more than 3 percent on Thursday.

Meanwhile, some experts said that the Internet industry should expect declining ad sales due to recession, adding that even Google, which is the key-player in the industry, is experiencing difficulties.With this, they said that smaller Internet companies, especially those start-ups, are for sure experiencing more challenges.

During a conference with analysts, Google Chief Executive Eric Schmidt said the company is not expecting the “business climate to become less challenging as selling ads are becoming more difficult.”

While its overall ad growth was low, Schmidt said the company’s Youtube service is starting to generate profit three years after it bought the popular video-sharing website for $1.76 billion.

According to Google senior vice president of product management Jonathan Rosenberg, billions of ads are shown in Youtube which can be turned to billion-dollar revenue.