arikgub - 9:46 am on Oct 20, 2012 (gmt 0)
The drop in cost per click will be troubling for them if an increase in clicks does not continue to make up for the lower cpc.
I don't think the increase in clicks will last for long.
Google is attributing the increase in clicks to serving more relevant ads, and doesn't say a word about the increased ad space on Google's SERPs, which is very likely to be a major contributor. This is ridiculous. And the analysts just keep repeating this stuff and never ask tough questions. It is impossible not to notice how much more ads and self-promotion are on Google's pages now comparing to a year ago. And the increase in clicks have nothing to do with that, really?
Anyway, this increase in clicks is unsustainable. You can not increase ad space indefinitely. At some point you have the entire above-the-fold filled with ads. That's already the case with many searches.