Google Paid Search on the Decline

Written by Zac Johnson
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If you follow the stock market at all, you are probably aware that Google’s stock has been on quite a decline lately. From it’s high of $747.24 a share in November to only $444.08 this week, there is reason for concern. Google’s February search traffic fell 4.6% below the January level and paid clicks fell 3% that same period. The latest comScore numbers are indicating that paid clicks are on track to be down more than 12% for the quarter.

While these numbers are extremely important for stock analysts and Google stock owners, a better question is “How is this affecting Adwords and Adsense users?“. We are part of the industry that spends and earns big off Google. Is the recession of the market and economy effecting your ppc campaigns or Google Adsense earnings? With the loss of ppc advertisers on Google, will it make it easier on the survivors of search and the ones who can flourish with continual paid search listings?

The recent news of Google’s continued loss in search traffic pushed the stock down another 3% for Wednesday’s pricing. The chart to the right shows the lifespan of Google’s stock since going live in late 2005, and peaking in November 2007. With the stock already down nearly a third this year, how much lower will Google stock tank?

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12 Replies to “Google Paid Search on the Decline”

  1. I actually made a post on this same topic earlier today. Ok click rates go down…. but does that really correlate into a lower stock price? I have to wonder. Google is such a volatile stock that I wonder exactly how many variables go into the rise and fall of the behemoth.

  2. Thanks for the info Zac.I did not saw that Google stocks fell that much not that I fellow them every day/month.

    The good thing is that less competition in Adwords will cost less to promote an affiliate product. 😀

    The bad thing is that I will earn less from Adsense. 🙁

    In the recession of the early 1990, those companies that continued to advertise made up better than those who cut advertising budget. Is it the same here with Internet?

    Now, are companies base their decisions on Google stock price thus using other smaller PPC networks or use both?

    Maybe Google should concentrate on their search engine to calm the investors.

  3. google won't tank – maybe all the real estate agents and mortgage brokers are figuring out that $4 and $5 bucks a click is just plain stupid when your website sucks and you have no way to convert those.

  4. I was just thinking the same thing. You hear so many people cheering when the stock went up, but nothing when it quietly lost almost half its value in the last few months. I think thats a HUGE story. Just shows you no company is 100% safe, not even Google.

  5. Of course Google's paid search is declining, they are doing everything they can to make it more difficult to make money with Adwords it's to be expected. So many landing page rules and $10 minimum bids eventually takes its toll.

  6. I think this indicates the decline of the once monopoly like google search era. Other search engines are beginning to copy Google's work and offer their customers products that can compete with Google's products, resulting in Google customers experimenting with other companies.

  7. I think that bubble has burst, and now it's time for Google to come back down to a more reasonable level.

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