Response Magazine Site Response Expo Site Direct Response Market Alliance Site Response TV Site Market Research Job Board

 

   Log in
  



Direct Response Marketing

Google's Cost-Per-Click Decline

22 Jul, 2009 Response This Week


MOUNTAIN VIEW, Calif. – Though Google’s year-to-year revenue has increased, it looks like the financial downturn is now affecting the search powerhouse, as its cost-per-click dropped 13 percent from the second quarter of 2008.

The average cost-per-click includes clicks related to ads served on Google sites as well as its AdSense partner sites.

Despite this decrease, the company earned $5.52 billion in revenues during second-quarter 2009, a 3-percent increase compared with the same period in 2008. “These results highlight the enduring strength of our business model and our responsible efforts to manage expenses in a way that puts us in a good position for the economic upturn, when it occurs,” says Eric Schmidt, CEO of Google.

Yet the decline in cost-per-click revenues “show that Web users are clicking on ads to comparison-shop without buying products, and buying lower-cost items online compared with a year ago” says Jeffrey Lindsay, a senior analyst at Sanford C. Bernstein.

Google’s paid clicks were up 15 percent compared to second-quarter 2008 and its net income was $1.48 billion, an increase of 19 percent vs. the same period last year. “Google’s business appears to have stabilized,” says Schmidt. “A quarter ago, we had no idea where the bottom was.”


Add Comment




©2014 Questex Media Group LLC. All rights reserved. Reproduction in whole or in part is prohibited. Please send any technical comments or questions to our webmaster. Contact Us | Terms of Use | Privacy Policy | Security Seals