Wednesday, April 16, 2008

Google's paid click growth awful again in March

Google is reporting earnings after the close tomorrow. ComScore came just out with the new numbers for paid click growth which were as bad as in February -- up only 2.7%. In all of Q1, Google's U.S. paid clicks rose only 2% year-over-year versus 25% in Q4 and 48% in Q3. That spells trouble for the companies top and bottom line results.

Mark Mahaney of Citi comes up with two reasons for this surprising development:

  1. Google's ongoing efforts to improve both lead quality for advertisers and the user experience for searches.

  2. A macroeconomic dampening of commercial queries by searchers

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source: Google: March Paid-Click Growth Awful (Again)

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