Google Cries Poor, Loses Money in Oz!
GOOGLE claims to be operating at a loss in Australia despite having 90% market share.
The reason, according to the Sydney Morning Herald, is that Google's Australian earnings are sent to Ireland where it is taxed at 12.5% before a service fee is reptriated back.
Anomaly 1: Google says it grossed just $A90m in Australia last year. Yet it has more than 90% share of the paid search market, which is estimated by leading industry figures to be worth $A870m in 2008. Do the math.
Anomaly 2: Google reported a loss of $A6.2m in Australia for 2008. It also lost money in 2007. Meanwhile the search market is going ballistic and everyone’s complaining about search inflation. Huh?
Anomaly 3: Google paid Australian tax to the Australian Government of $A3.9m in 2008 – less than some of its Australian clients would pay them each year for search advertising, and also less than its “travel and entertainment” bill of $A4.6m.
The industry reckons Google will take more than $1 billion from Aussie advertisers this year.
Wonder what Google will report?
Meanwhile, the company refused to comment on the discrapancies.
Search Engine Room: May 25, 2009
Australia's first Group Buying Summit was staged in Sydney on May 7, 2012. It was a good day with 135 delegates and lots great presentations. Speakers included:
Search Engine Room, Australia's original search event, is returning to Sydney in mid November, 2012.
Please subscribe to newsletter for event updates and if you have any queries, contact Martin Kelly.
Meanwhile, check out images from the last Search Engine Room below.