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Baker McKenzie announces record global revenues of $2.92B

Baker McKenzie has announced record revenues for the fiscal year ended 30 June 2019 (FY19) of $2.92 billion. In terms of constant currency, Baker McKenzie’s revenues were up 4.4% compared to the previous year. In US dollar terms, the Firm’s reporting currency, this translates into growth of 1.2%, after the effect of adverse currency exchange.

Baker McKenzie remains the most geographically diverse global law firm and all of our regions recorded growth as follows: EMEA +5.2%, AP +2.1%, LA +9.0% and NA +4.0%

All of our key financial metrics improved over last year: revenue growth, net income, profit margin, Profits per Partner (PPP), Revenue per Partner and Profits per Lawyer. We are especially pleased to accomplish this amid a market with flat demand. PPP was up by 3% to $1.48 million in US dollars. Overall net income or profit rose by 2% to $1 billion. Over the last decade the Firm has grown by 40% in terms of revenue and 50% in terms of PPP, outperforming most of our competitors.

Among our standout markets, all with significant double-digit growth, include Bogota, Buenos Aires, London, Prague, Turkey and Warsaw.

Baker McKenzie Acting Chair Jaime Trujillo says, “Recording 4.4 percent growth in a market as challenging as this while maintaining our commitment to all of our offices and our full service offering is a good result. The investments the Firm continues to make in legal services, the centers of excellence we have opened in lower-cost locations, and more effective partnering with clients, supported by long-term investments in industry, practice and client programs have enabled us to show profitable growth.

“This is despite the distinct geopolitical head winds throughout the second half of the year, which prompted our clients to cancel or postpone projects. We are also one of the most geographically diverse professional services firms in the world, both one of our key strengths, and at times a challenge in markets impacted when the US dollar is so strong, as it was this past year.”

Our Future

Jaime concludes, “There have been moments in the past year when the Firm was tested as much as it has been in our 70-year history, but I am extremely proud of how we have come together and dealt with the issues that we have faced. Neither has it been an easy 12 months for the profession as a whole, with softening client demand as a result of geo-political uncertainty, an increasingly competitive market with new entrants and a declining overall market. It takes a Firm like ours with an enormous amount of resilience, experience and strong leadership from all our partners to be confident to face the challenges ahead.”

Sundar PHOTO

Google just rebranded its $100 billion advertising business

Google, which books more than $100 billion per year in advertising revenue, announced on Tuesday that it is streamlining multiple advertising technologies into three main products called Google Ads, Google Marketing Platform and Google Ad Manager.

While the change is mostly cosmetic, it’s a subtle acknowledgment that consumers are increasingly accessing the internet and viewing ads on a variety of devices, not just on their computers.

About 85 percent of Google’s total revenue comes from its technologies that place advertising on its properties and partner sites. It dominates online advertising alongside Facebook, with the two companies taking in 56.8 percent of all U.S. digital advertising spending, per eMarketer.

Despite this massive success, the company is eliminating the AdWords brand, which launched in 2000 as one of Google’s first advertising products, and the DoubleClick brand, which it acquired in 2007.

AdWords allowed marketers to buy ads on Google properties and partner networks through search terms, text or banner ads (known as display), video ads, or in mobile apps. It brought in $95.4 billion last year according to Google’s government filings. But its name still reflects the days where desktop and websites were the main way to access the internet, and the internet is a much different place from when Google started selling advertising 18 years ago.

Google announced in 2016 that there were more searches coming from mobile than desktop in 10 countries including the U.S. and Japan. Advertisers realize this, and they want flexible ways to reach customers wherever they are, not just on the web.

Google Ads is primarily just a name change for AdWords. Like its predecessor, it will allow companies to buy ads on Google’s ad network across different platforms, including searches, YouTube videos, Google Maps, Google Play, Android Store apps and on partner sites. Instead of buying a specific type of behaviour (desktop viewer, mobile viewer, etc.), Google’s system will allocate advertising dollars across platforms based on the customers advertisers are trying to reach.

However, there’s one small change: Google Ads will make it easier for smaller businesses to advertise through Google. An option called Smart Campaigns will let companies create an ad within minutes through a set form, and set a goal like getting phone calls, sending people to their website or bringing customers to their store.

Google Marketing Platform is aimed for larger advertisers and media buyers, and will combine advertising technology from DoubleClick, which Google acquired in 2007, and data management from Google Analytics 360 to help companies purchase and track the effectiveness of their ads.

Google Ad Manager is a product to help publishers manage spaces on their sites available for advertising, otherwise known as ad inventory. It subsumes DoubleClick for Publishers and DoubleClick Ad Exchange.

Smaller web sites will continue to use AdSense, which lets advertisers place small ads on their sites, and mobile app developers will continue to use AdMob, which lets them earn money from mobile ads in their apps.

To continue to thrive across all these platforms, Google will have to continue tracking user behaviour, especially as advertisers grow more demanding. As people grow increasingly wary of technology firms monitoring what they do online and more regulation comes into effect, Google will have to tread a line between helping marketers find customers and keeping personal data private.