Google has reported a jump in its fourth quarter profits as a result of increased spending by advertisers in a bid to reach customers over Christmas.
Revenue for the search engine monolith rose to $11.3 billion – that's year-on-year growth of 39 per cent.
This is equivalent to shares in the company rising to $10.65, as total spending in the e-commerce sector in the United States rose by 14 per cent in the last two months of 2012.
Sid Shah, director of business analytics at Adobe, told the Australian Financial Review (AFR) that the fourth quarter played a major role in the success of Google's year.
He commented: "Q4 retail is absolutely crucial for Google's earnings.
"Despite talk about retail having a weak season, Google’s product listing ad program has taken off quite successfully."
In a statement, one of the company's co-founders Larry Page said that this is good news for the business.
He explained: "In today's multi-screen world we face tremendous opportunities as a technology company focused on user benefit – it's an incredibly exciting time to be at Google."
Experts have told the AFR that despite the increasing popularity of mobile online shopping, Google has not yet found out how to maximise profitably of the phenomenon.
Google has entered the mobile market in a few ways, both by purchasing Motorola and by producing its line of Nexus devices – both tablets and smartphones.
The impetus for a mobile approach for Google was driven by the increasing number of mobile users searching Google on their iPhone or iPad – for which, the Page-Brin creation has to pay a fee to Apple.
Google is also using social media marketing in a bid to promote its plus feature – a rival for Facebook and Twitter.
Posted by Tim Wright