Msg#: 3563557 posted 5:56 am on Feb 1, 2008 (gmt 0)
I was reading this article by Businessweek and I just have to share it if it hasn't being posted before, most interesting is this point being made bout the slowdown in clicks.
"Alarming for some investors was a slowdown in the rate at which ads are clicked on. That's important because Google's income from advertising hinges in part on how often Web surfers click on ads. Google said paid clicks increased 30% from a year earlier, compared with a 45% increase in the fourth quarter of 2006. Schmidt said the company has been reducing the clickable area around ads to decrease the number of accidental clicks, thus making the ads more valuable to marketers."
Msg#: 3563557 posted 6:01 am on Feb 1, 2008 (gmt 0)
those "alarmed" investors are the same ones that thought sub-prime mortgages were a great investment. sub-prime clicks are the same thing: higher returns in exchange for a lower quality business model.
Msg#: 3563557 posted 7:35 am on Feb 1, 2008 (gmt 0)
I think we can all understand why 45% growth per annum is not sustainable for very long. Last year's increase in the number of clicks was 30%, and it's a mystery to me how they can even hope to match THAT over the next year. I mean, where do they have to go from here?