Rumour Has It The Sky Is Falling…

by The Guy January 31st, 2008 

Copyright: Walt Disney Company

Check out those Google numbers today. A fall from grace impacted by their missing the Street estimates. Talk about loosing your street credibility.

Two things stood out for me…"Most shocking is the steep decline in paid clicks, one of the best metrics to measure Google's underlying advertiser strength. " From 22% growth last year to only 9% this year. Suggesting, some say, that Google may not be as well insulated from a recession as expected.

Maybe. Maybe not. Advertising tends to be the first line item reduced on the budget in lean times. Will it bode the same for PPC advertising?

And if it does, will that see a reduction in PPC costs assuming their is less competition for keywords. (IMHO – unlikely.)

But it may well make Yahoo and MSN a little more attractively particularly when as efficiencies become a required metric in PPC budgets.

This could be interesting, very interesting.

Have a good one.

~The (SEP) Guy

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2 Responses to “Rumour Has It The Sky Is Falling…”

  1. jansegers says:

    It seems logical to me that fewer companies means fewer advertise revenue.

    My impression is that in America, lots of people do business over the web and they used to inhance their business by placing Google adds.

    But in order to keep doing this, they have to keep selling goods. Most of these goods aren't necessities, but just luxurious things one might be trilled to have.

    But when the public is aware of the cost of life or just afraid not to be able to keep their house, people tend not to buy this kind of stuff.

    Hence, many little businesses are put out of existence.

    Thus less business people places adds.

    So, it's only logical that Google feels recession.

    It could even be that revenue levels at Google are a very good indicator of the American economy.

  2. Mayo says:

    Investing in ad market will continue to grow. Only a fool would want to see the bubble forming that would cripple entire online market. Ad market was hot now it is time to cool off by little. BTW Google is not the only player in the advertising business, you can see so many networks today that it gives you a head spin of how to tap all of them.