Google posts US$2 billion Q1 profit thanks to big brand spending

Revenues at Google also increased markedly. In the three months ending 31 March 2010 Google generated $6.77 billion, up 23 per cent on the same period last year.

Google attributed the growth to an increase in consumers clicking on branded search adverts - clicks on Google ads increased 15 per cent in Q1 2010, compared to Q1 2009. Google's chief financial officer Patrick Pichette said a return of large advertisers and an improvement in the economy helped Google grow revenue and profit.

Google's positive results have beaten many analyst forecasts although the search giant's share price has dipped since the announcement.

After scaling back on staffing last year, Google increased its workforce from 19,835 full-time employees in Q4 2009 to 20,621 in Q1 2010 - an investment that some analysts are uncomfortable with.