Google: Ad Slowdown, What Slowdown?

8 thoughts on “Google: Ad Slowdown, What Slowdown?”

  1. I don’t know what Yahoo’s problem is but I can say this with certainty, their web experience sucks.

    You were bitching about how bad Comcast is in SF, but I gotta say nearly all the yahoo services I use suffer from (far too) long webpage load times. I’ve used these services for along time, but I’m phasing them out because they’re PITA.

    I need solutions, not aggravations.

  2. The beauty of Google’s model is that I think it reflects the small business economy.
    How many times have we heard this already “small business is big business”?
    So I am glad that Google is showing increasing revenue because that directly relates to measure of the new economy. It’s a tale of two economies, the old and the new, both existing simultaneously.

    However I do hope the click-fraud thing is not major portion of their reported earnings.

  3. Loved the article, and I agree with many of your points.

    Actually, Google is demonstrating the ad slowdown as well; you just have to look at their slowdown in revenue growth. The effect just isn’t as profound as Yahoo since they are the market leader. You can see the graph showing their downward trend in revenue growth on the Blackfriars blog:

    http://www.blackfriarsinc.com/blog/2006/10/google-delights-but-even-it-isnt.html

    I have to agree with you though; the company that comes through this smelling like a rose is Google.

    Carl

  4. I have read Googles 2005 annual report and their statement on Click Fraud. It says if necessary, they if necessary they will pay RETROACTIVE payments to anyone who claims click fraud.

    I think that 20% of Googs revenue is click fraud. Just like the 1 minute dropped on your cell phone – you dont call the cell company to get a credit. Adwords is the same thing. The mom and pop who buys an Adwords account are not going to challenge some click that costs them fifty cents. They just pay and move on.

    I am not implying Goog is doing anything improper and may be profiting from an ignorant consumer but as click fraud tools become better and more users fight back, Goog could see a tremendous hit to the numbers.

  5. I don’t believe this is a Yahoo specific problem. Sure they are having trouble innovating their ad platform but I think this is a display advertising problem. Google’s displays ads are a tiny fraction of their revs. Yahoo’s is very leveraged to this segment. Companies like Bankrate have said they are having problems as well.

  6. I’m not going to pretend to know anything about Google, other than the fact that I’ve used their search engine since 1996 on a personal level and have used Adwords and Adsense since they were introduced on a professional level.

    As far as I’m concerned, Google needs to create a slightly enhanced method to determine a “pay out” on a click-through. Click fraud might be characterized as a one-click experience. The user clicks the ad and moves on rather than viewing the destination site, whereas a true click-through represents multiple clicks. That’s to say that the user that clicks an ad will most likely view several pages from the destination site.

    Google might well be tracking such things, but if they’re not I think the problem could be solved with a little bit of code.

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