29 February 2008
Google has seen its stock price fall. This in the wake of a report indicating that US click-throughs from the search engine’s Pay Per Click ads has declined.
Financial analysts have sited that Google's US paid Web search clicks in January 2008 amounted to 532 million, representing a a 0.3% decline from January 2007. This is based on research not yet publicly released.
However, the research also reported that Google's paid clicks showed 13% growth in December 2007 from December 2006, and 25% growth in the fourth quarter of 2007 compared to Q4 2006.
The news has rekindled the debate surrounding the value of ‘pay per click’ versus ‘pay per action’ revenue models for online advertising.
Google has explained while discussing earnings in recent quarters that it is taking steps to reduce click fraud, and to improve relevance and reduce numbers of ads displayed on search pages.
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