Analysts are assessing Google’s paid click numbers for the last couple of months and are concerned that the search engine giant is falling short of its projected goals since the company adjusted how it generates clicks. The Associated Press article “Google Paid Clicks Data Generate Debate” out today, news of Google’s faltering stock revenues and click rates has analysts wondering if this is a permanent problem or a temporary melt-down.
A few months ago Google’s click through rate had grown by 25-40% compared to a year earlier. But that momentum seems to have dried up.
So what does this mean? Well Google says that this downturn is a result of their making each click more useful to the advertisers, thus improving their bottom line – overall conversion rate for a campaign. Some analysts think that the rate will improve once advertisers realize the increased value Google has placed on their revised click program and the added benefit they will get out of it.
Personally, I think part of it is consumer fear driving many to avoid online purchases in the near term until the economy shakes itself out. Some advertisers may be trimming their Google ad budgets but I’m not seeing that really being done on a scale that would affect Google drastically. Companies are actually turning more and more to online advertising, in my opinion, because it is actually a much more cost effective promotion solution than print and television is right now. No, I see the slowing in click-thrus on the consumer end right now. But I think its temporary, and we will see these click numbers improve when consumers start deciding to buy online again.
