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ComScore, an analyst firm left holding the bag when Google's financial performance far exceeded analyst expectations, scrambled Friday to reconcile its pessimistic statistics with reality.

At the heart of the matter is a key Google advertising performance measurement called paid clicks--the number of times Web searchers clicked on one of the ads Google shows alongside search results. On Tuesday, ComScore reported Google's paid clicks grew 1.8 percent from the first quarter of 2007 to the same period in 2008. But on Thursday, Google said the growth actually was 20 percent.

The gap prompted Google Chief Executive Eric … Read more

Google topped pessimistic Wall Street profit expectations Thursday, reporting a net income increase of 31 percent to $1.31 billion for its most recent quarter.

Excluding various items, that meant earnings per share of $4.84, well above the $4.52 expected on average by analysts surveyed by Thomson Financial. Revenue, which benefited an "immaterial" amount from the acquisition of DoubleClick, was $5.2 billion in the quarter ended March 31, compared with $3.7 billion for the same period a year earlier, the company said.

Excluding $1.49 billion in partner commissions called traffic acquisition costs, Google'… Read more

Now that Google has acquired DoubleClick--the display advertising feather in its proverbial cap--it's time to see if the hat fits.

The $3.1 billion acquisition, which finally closed last week upon European regulator approval, gives Google a much needed boost in the market for display advertising.

Google hasn't offered many clues as to what its plans are with DoubleClick, other than to hint at layoffs. But Google pundits and executives at small ad outfits do have concerns and plenty of opinions about what the search king should do.

Google's AdSense serves up pay-per-click text ads to Web … Read more

Google says "gadgets" and DoubleClick says "widgets."

Semantics is probably the last thing on Google's mind right now as it starts integrating DoubleClick and its online ad technologies into its business. But it's something they'll have to figure out, nonetheless.

Google's new DoubleClick business, a recent acquisition following U.S. and European regulator scrutiny, announced on Monday that it is adding rich media widget ads to the repertoire of online advertising types it serves up to customers.

Widget ads aim to be interactive and clever enough to entice Web surfers to grab … Read more

If you can't beat 'em, join 'em.

Yahoo and Click Forensics announced on Monday that they will be working together to fight click fraud.

Click fraud has historically pitted advertisers, who claim they are charged for fraudulent clicks on paid search ads, against search engines, which claim they manage to catch most of the click fraud out there.

Then there are companies like Click Forensics, which tracks the rates people, or automated software bots, are "clicking" on ads (and also recently got $10 million in funding). Click Forensics also releases regular reports on the perceived click fraud … Read more

Click fraud is the search industry's dirty little secret--one that Google and Yahoo like to keep mum about. But a company that tracks the rates at which people, or bots, fraudulently click on paid search links just got a financial boost to work a little harder on its beat.

Austin, Texas-based Click Forensics said Tuesday that it raised $10 million in a second round of funding led by Sierra Ventures, which was joined by early investors Austin Ventures and Shasta Ventures. Sierra's managing director, Steven Williams, will join its board of directors.

The company plans to use … Read more

Now that the Google-DoubleClick deal has been approved by European lawmakers, the online giant has finally taken control over one of the most important display advertising firms in the world. And while some are calling this a great day for Google, I'm not so quick to agree.

What, exactly, makes this such a great day for Google? Is it because it can solidify its position as the world's premier online ad firm? If so, I thought it already was: Google's total share of online advertising revenue before the DoubleClick deal was over 60 percent and no company was even close. If it wasn't that, was it because Google finally had a leg up in the display ad business where it has floundered for years? Possibly. But considering that DoubleClick only generated about $365 million in revenue last year, I just don't think this is a major step forward for the company.

I simply don't know how anyone can say the Google-DoubleClick deal was good for Sergey, Larry, and Eric. And if you look at the numbers and what Google is actually adding in this deal, it looks even worse.

If you ask me, Google made a mistake.… Read more

Google may cut its workforce as it integrates online ad firm DoubleClick into its operations, Google Chief Executive Eric Schmidt warned in a blog posting after the acquisition was approved by the European Commission on Tuesday.

"As with most mergers, there may be reductions in headcount. We expect these to take place in the U.S. and possibly in other regions as well," he wrote. The process of determining the right staffing levels in the U.S. is expected to be completed in the U.S. by early April, and could take longer for offices outside the country, … Read more

Updated on March 11 at 8:52 a.m.

European antitrust regulators on Tuesday approved Google's $3.1 billion merger with DoubleClick, paving the way for a blockbuster deal in Internet search and publisher-based advertising tools.

Approval by the European Commission, which came without conditions, had largely been expected to occur this week. The Commission's announcement comes three weeks before its April 2 deadline, in which it had to determine whether to nix the deal.

With the Commission's decision in place, Google announced on Tuesday that it has formally closed its merger with DoubleClick.

"We are … Read more