AlyssaS - 1:41 am on Sep 7, 2011 (gmt 0) [edited by: AlyssaS at 1:55 am (utc) on Sep 7, 2011]
unless it involves a rolling back of Panda which I see as unlikely given reports that Google's Q2 revenue shot up without higher web traffic
Why are you all assuming that the reason G's Q2 revenue increased was because of Panda? If you go back to the threads when Panda rolled out, everyone predicted a fall in revenue as the content farms who display Adsense got pummelled - and the content farms didn't then go out and spend on Adwords - have you seen any ads for Mahalo, eHow and others? I haven't.
Plus sites are still ranking at #1 - different sites to be sure, but they haven't removed sites from the serps and just left the space as a big blank.
I read the Q2 increase in revenue to be nothing to do with panda and entirely down to offline factors. It's horrible out there in retail world, people arn't impulse shopping, people are avoiding the shops altogether because they haven't the money to spend.
The only way to survive a climate like that is to advertise to the few people who are untouched by the economy - make sure your goods are first in line, right in front of their noses. The best way to do this is advertising on the search engine, as people typing in "buy golf clubs" are actually looking to buy golf clubs, they arn't affected by the downturn. Television and magazine advertising are both more expensive and not targeted.
So I'm not at all surprised that more mainstream businesses are bidding on Adwords because from their point of view it's the cheap survival strategy. Of course increased numbers of advertisers means CPC goes up and G's revenues along with it.
The exact same thing happened in 2008/9 during the financial crash. Mainstream advertising fell back, as it is expensive and mainly about brand building, while search advertising which is cheap and targeted, continued it's 20+% growth per annum.
This will continue to happen in every single recession, Panda or no Panda. The targeted traffic thing makes G recession proof.
[edited by: AlyssaS at 1:55 am (utc) on Sep 7, 2011]