|
 |
|
Shop
You are here: News > News > Has Google's Top-Secret Cash-Making Machine Been Exposed?
| » IT Security NEWS |
| » 14 May 2009 |
| Has Google's Top-Secret Cash-Making Machine Been Exposed? |
| Even though Google stubbornly insists on the profitability of its pay-per-clicks model, the scheme may have already reached its limit in terms of effectiveness. Although in the first quarter, Google claims that paid clicks were up 17%, Hitwise numbers reveal a different scenario for the second quarter. According to the dedicated team of Hitwise net-watchers, paid click advertisements have taken quite a beating last April. Hitwise reports that 7.25% of all search engine traffic came from paid clicks in the four weeks leading up to May 9, which is an abrupt dive from the 9.84% traffic in the same period in 2008. That's a 26% traffic drop that could spell doom to the revenue of companies still depending on the paid ad clicks scheme. The same time period last year also overlap with Google's momentary attempt to reduce the number of paid ad clicks on its results pages. Google CEO Eric Schmidt and his cohorts reassured that the recent disastrous nose dive in paid clicks traffic was all part of their plans and it indicates that Google and its advertisers are pulling in more profits than ever before. However, the abovementioned reports from net-watchers like Hitwise and several others state otherwise. In February 2008, the equally savvy net-watchers of comScore released their now well-known report specifying a sharp decline in Google's paid click rate more than a year before this month's most recent debacle. The comScore report reveals that Google ad click growth went down 7% year after year while on Wall Street, Google company shares plunged nearly 10% over a two day period. After getting support by Google, comScore soon reinterpreted the results of its report, portraying the disappearing clicks as all part of Google's strategy to improve the so-called value and effectiveness of the ads. Google kept on reducing coverage until the disaster occurred after it yet again expanded ad coverage during the first three months of this year despite the reduction of the overall number of advertisers availing of its AdWords system. Furthermore, an initial draft of AdGooRoo's quarterly report on the meltdown discloses: "An increase in the number of ads coinciding with a decrease in the number of advertisers suggests an artificial change in ad coverage, perhaps in response to sluggish activity, quite different from the organic growth which fueled revenues in previous quarters." |
 |
 |
Awards & Reviews | |||||
|
||||||
|
|
Subscribe to our Mailing List |
|
|
|
|
Customer References | |
|
||
