In the second quarter of 2007, Google began a trial to help advertisers, operators and programmers to buy, schedule, deliver, and measure ads on television. Revenues are recognized when fees are charged advertisers each time an ad is displayed on TV.
In the second quarter of 2007, Google launched Google checkout, which provided a free online payment processing system for both consumers and merchants. Those that use Google's advertising use this system for free. Beginning in Jan 1, 2008, they will be charging 2% of the transaction amount to the extent that it exceeds what they spend on AdWords advertising in that month.
Our international revenues have grown as a percentage of our total revenue by 47 - 48%. This increase in the portion of our revenues resulted largely from increased acceptance of our advertising programs, increases in our direct sales resources and customer support operations and our continued progress in developing localized versions of our products in these international markets.
Out of the 100% of revenues, total costs and expenses amount to about 65%, which means Google realizes about 35% in profits. About 11% is paid to taxes, which nets about 25%. Google is expected to reach about $15 Billion in revenues, by Jan 08. This past quarter, for 9 months, total revenues were $11.77 Billion.