Google Ad Growth Slowing Down
Posted by Bezhou Feng on 27 March 2008 - 14:53 · 8 comments & 2429 views
Google showed modest growth during February in a closely watched report released on Wednesday on how search sites like Google get paid by advertisers. Web measurement firm comScore issued a monthly report on "paid clicks" -- a key measure of how Web searchers are converted into ad viewers -- that showed Google's paid click rate grew only 3.1 percent year-to-year in February, a sharp decline from roughly 40 percent growth six months ago. "You can't avoid the trend. Something that was humming along at 40 percent is now near zero: Something is going on there. Especially when the economy is getting a little twitchy," said RBC Capital analyst Ross Sandler.

However, one must also factor in Google's efforts in recent quarters to improve the effectiveness of advertising shown in the margins of its Web search services by paring back the number of ads per page and reduce inadvertent customer clicks. "It is not as bad as comScore data shows it but it's not as good as Wall Street expects it to be," Sandler said.

View: Full Story at Reuters


There are 8 additional comments
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(1 reply) Quote this comment Reply to this comment #1 Posted by +GreyWolfSC on 27 Mar 2008 - 15:22
*cheer* Internet Bubble-Pop 2.0 is coming soon to a financial market near you!
Quote this comment #1.1 Posted by HalcyonX12 on 27 Mar 2008 - 15:52
But have you ever processed words... ONLINE?!? It's just so much better somehow!
Quote this comment Reply to this comment #2 Posted by OceanMotion on 27 Mar 2008 - 15:31

Microsoft want to throw away 40 billion on Yahoo to get more advertising revenue. Mental.
Quote this comment Reply to this comment #3 Posted by HalcyonX12 on 27 Mar 2008 - 16:07
Merging the Yahoo and Google user bases may also allow them to claim first place in the search arena without having to do anything at all.
(1 reply) Quote this comment Reply to this comment #4 Posted by xfx on 27 Mar 2008 - 16:33
I recently closed my account... ads are too expensive to maintain and well over 60% of the clicks are fraudulent.
Not worth it.

I really hope this trend continues and Google/Yahoo/others find some other way of making money. Paid ads pollute search engines.

Last edited by xfx on 27 Mar 2008 - 16:54
Quote this comment #4.1 Posted by Justin- on 27 Mar 2008 - 16:39
And I closed my AdSense account because normally high profits (dollars a day) from them suddenly turned to just a few cents a month -- and the site size didn't change.
(1 reply) Quote this comment Reply to this comment #5 Posted by BigBoy on 27 Mar 2008 - 20:32
Well... doh!!

A TON of Google revenue was coming from real estate related advertising. Anyone noticed there are issues in that area?
Quote this comment #5.1 Posted by Magallanes on 28 Mar 2008 - 12:04
it's good to known.
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