At present, Google is in a bit of a tight locale considering that their earnings appear to have been leaked out and their stocks and shares are downwards approximately 10 percent.
The leading reason behind the fall was actually a loss of their main business, pay per click, which has slipped in success when compared to the same quarter from the former year.
Specifically, even though the number of individuals clicking through to advertisements has accelerated, the charge per click has fallen.
The truth is, Pay-Per-Click revenue has been down for the previous 4 quarters, and individuals are actually wondering precisely how robust Google AdWords is as a business plan.
Even though I do think it's somewhat early to challenge a complete strategy for conducting business by using a solitary report, it can bring up a couple of questions.
Considering that it is a well-acknowledged fact that Facebook's paid advertising is not the income-manufacturer internet marketing firms would like it to be, but this is Google, one of the mainstays of the Internet, that seemed like it would likely make money in any manner it wanted to.
Just why is AdWords doing poorly for Google? I think pay-per-click is doing poorly for Google because using advertisements is the opposite of exactly what Google is supposed to be, and consumers are starting to fully understand this truth.
Google was able to move its way to the peak of the search engine hill given that it was not loaded with all the spam sites that other search engine listings at the time had harbored.
With each consecutive Google algorithm enhancement, Google is expected to weed out progressively more companies that acquiring rankings by way of dishonest website SEO.
The irony, not surprisingly, is that Pay Per Click does just that.
To paraphrase, when folks are doing Google searches, they are discovering a lot of web sites that actually would not be there except for the simple fact that they are paid for ads.
So just what does a Pay Per Click surfer do whenever they click on these web pages? The typical Google user is becoming so sophisticated that they instantaneously depart, making that a sacrificed click from an advertiser's viewpoint.
And the promoters, being smart, are tugging free from Pay Per Click advertising, since it is not making them the profits they require it to.
The information exhibits this distinctly.
A lowering of cost-per-click implies that there are fewer consumers putting in bids on adverts.
For this reason, companies are beginning to question whether PPC is an effective way to advertise.
Is this a trend that will continue? Only time will tell.
But, for the time being, it looks like Google is going to have to think of something new.