Google strategy of focusing on quality of searches lead to weak growth in ad clicks

Leading search engine firm Google has witnessed a second consecutive month of rather weak growth in advertising clicks. The trend has added on to the concern that the Internet search specialist is perhaps suffering in the economic slowdown.

Research firm Comscore, which conducted a study, observed a mere 3 per cent year-on-year (Y-o-Y) increase during the month of February in Google’s ‘paid clicks’. Although the number indicates some improvement on previous month’s zero growth, it points to a sharp climb down as compared with monthly increases of between 25 per cent and 40 per cent over the corresponding period last year.

Google stated the result (fall in ad clicks) was largely a consequence of its conscious strategy of focusing on quality. The firm has been making an attempt to do away with accidental clicks and has been working with its advertisers to ensure that links resemble closely to users’ search queries. But the resultant fall, if the reasons are to be believed, has contributed to a 36 per cent fall in the search engine giant’s shares since the start of the year. Rob Sanderson, an analyst with American Technology Research, stated the number of clicks is less important than Google’s overall revenue figures, which are based on the clicks converted by advertisers into actual sales.

No Comments

No comments yet.

RSS feed for comments on this post
TrackBack URI

Leave a comment