Web Advertising Increases During the Credit Crunch, Google Leads

Bloomberg has reported that while advertisers are cutting back on TV and print media spending, they are actually moving to adverts that run alongside search listings and on affiliate websites, namely Google’s Adwords program. The Internet will account for 8.7% of the $284 billion in U.S. ad spending this year, up from 7.2 percent in 2007, according to Barclays Capital.

Excluding revenue passed on to partner sites, Google’s sales expanded to $4.04 billion last quarter. Total revenue climbed 31 percent to $5.54 billion.

At least eight analysts had reduced their estimates for Google’s third quarter this month after the global credit crisis erupted. That made it easier for the company to beat the average profit estimates yesterday.

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