Source: http://ift.tt/eKERsB - Wednesday, April 08, 2015
Google stock has been flat for a couple of years, and we've decided to take a closer look at why . One metric that people who are pessimistic about Google like to talk about is the declining amount that Google can charge for each click on its search ads. When Google reported its earnings for the fourth quarter of 2014, it said that cost per click was down 3% from the same quarter a year before. Worse, Google said the rate of decline was accelerating. Why is this happening? We asked two experts on the intricacies of Google's search advertising business: Danny Sullivan, the founding editor of Search Engine Land, and Ginny Marvin, one of Search Engine Land's reporters. The following is what they told us, in paraphrase. After the iPhone came out in 2007 and Android came out in 2008, Google executives realized that the number of people connecting to the internet on mobile devices would soon surpass the number connecting on desktop computers. This is what that trend looked like: The trend was bad news for Google, because at the time it made almost all of its money from selling desktop search ads. So in March 2013, Google made a decision. It told advertisers : If you buy ads from us, they will show up on desktop and mobile — we aren't going to distinguish between the two platforms. It was a quick-and-dirty way for Google to quickly become a huge player in mobile advertising. For the most part, advertisers took in this news and continued
from Top News on RSS Feeds http://ift.tt/1JpegYo
Google stock has been flat for a couple of years, and we've decided to take a closer look at why . One metric that people who are pessimistic about Google like to talk about is the declining amount that Google can charge for each click on its search ads. When Google reported its earnings for the fourth quarter of 2014, it said that cost per click was down 3% from the same quarter a year before. Worse, Google said the rate of decline was accelerating. Why is this happening? We asked two experts on the intricacies of Google's search advertising business: Danny Sullivan, the founding editor of Search Engine Land, and Ginny Marvin, one of Search Engine Land's reporters. The following is what they told us, in paraphrase. After the iPhone came out in 2007 and Android came out in 2008, Google executives realized that the number of people connecting to the internet on mobile devices would soon surpass the number connecting on desktop computers. This is what that trend looked like: The trend was bad news for Google, because at the time it made almost all of its money from selling desktop search ads. So in March 2013, Google made a decision. It told advertisers : If you buy ads from us, they will show up on desktop and mobile — we aren't going to distinguish between the two platforms. It was a quick-and-dirty way for Google to quickly become a huge player in mobile advertising. For the most part, advertisers took in this news and continuedfrom Top News on RSS Feeds http://ift.tt/1JpegYo
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