Google is continuing to see amazing profits thanks to their status as the most used search engine. It seems the ads they run along the top and down the side are pretty lucrative for the search engine giant.

In what is becoming a quarterly ritual, Google Thursday again announced another record earnings period, posting revenues of $1.578 billion–up 96 percent over the third quarter of last year. The earnings were far rosier than the company had led investors to expect last quarter, when Google brass cautioned that the summer typically is the weakest time of year for advertising.

Most analysts point to Google’s abundance of new ideas, from Google Desktop sidebar to Google’s new blogsearch.

Hallerman also pointed to the large sum of cash that Google now holds on hand–$7.6 billion, according to Reyes–as another indicator of strategy. "Bottom line is with cash like that, they’re going to be asking what smaller companies can they buy up–what partnerships can they buy into?" he said.

The way Google has taken their Web 1.0 infastructure, search engine, and married it to Web 2.0, content, should be of great interest to business owners. They’ve made a leap of faith by investing so heavily in blogging, but it apppears to have been part of a powerful long term strategy.