Junior Member from US
joined:June 9, 2008
Google today reported that first quarter revenue was up 27% versus a year ago while profit missed expectations.
However, Google-owned sites had a revenue increase of 32% while partner sites had an increase of only 19%. Partner sites have a much lower profit margin for Google because of payouts.
In another announcement on this site, Bing broke through the 30% market share in search for the first time while Google lost share.
If Google is starting to have a harder time maintaining its stellar profit growth and search market share, doesn't it stand to reason that it would shift some of its more lucrative advertisers onto Google-owned sites and the less lucrative ones on partner sites? And wouldn't that explain why so many sites are reporting a drop in revenue?