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Google announced a 26 percent rise in third locale earnings on Thursday, while also dropping strong hints that even the phenomenally successful search train giant has concerns about how to keep thriving during the tougher economic period ahead.

Thankfulness to everyone s hard work. Google had a good quarter. Transfer and revenue were both solid and we kept tight control on costs, summed up Google Chief executive Eric Schmidt, during a discussion call with analysts today.

Google wasn t the only know-how dealing to show good earnings during the economic slowdown between July of September of this year. But in a way, Google actually benefited from the slowdown, Schmidt suggested. Year-on-year, for example, search question interchange is growing in almost every vertical, according to the CEO.

We believe that these consequences reflect the information that as promotion budgets are squeezed, targeted, measurable ads are becoming more valuable to advertisers. As end customer budgets are squeezed, public use the net for judgment shopping to hunt for bargains online and in stores.

Nonetheless, Schmidt also acknowledged during today s call that achieving efficiency over upcoming station capacity well be harder.

I think everyone on the call and listening understands that it is pretty clear the economic circumstances today globally is worse than public were predicting just a month ago, he told analysts.

Aside from a 26 percent increase in year-over-year third locale profits, Google this week announced periodical revenues of 5.54 billion, representing a 31 percent gain over the third locale of 2007 but only a 3 percent increase over the second locale of 2008.

How strength of character Google manage in upcoming financial digs Google, Schmidt said, strength of character continue to cone-shaped tool most of its nest egg into its foundation dealing of search -- the same locale he pointed to as presentation itself rather recession-proof during the third quarter.

Our customer knowledge is getting much better. File extent is getting much larger, greater personalization for better consequences globally for every user, oodles and oodles of verbal communication support, more highly relevant ads against as many queries as possible and using more sophisticated gear for advanced behest and quantity and optimization, according to Schmidt.

Advertisers, who understand that promotion is directly correlated with revenue, can use persons gear to maximize revenue based on the conditions that they set and based on the budgets, which is what they care about. slap the same time, Google strength of character continue a current development toward internal price tag containment. Along the way, we are leaving away to stay very close, keep a very close eye on costs. It makes sagacity given the lot we read in the documents and we have done that effectively in this quarter, the analysts were told.

But Schmidt also suggested another technique in which the prospect thrift dealings of other companies capacity present opportunities for Google. Google Apps can help fill the need for lowered IT expenditures, he noted.

In apps, companies are leaving away to cut IT outlay and increase efficiency with greater collaboration. Well, we are there for them. Our activity applications really add worth there.
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