month 28 days according to Hongkong daily financial reports, a survey report shows that the Internet search engine giant Google in January advertising rates fell sharply, investors worried the company failed to get rid of the overall economic slowdown dragged down, some rating agencies also reduce the company’s earnings forecast, its share price plummeted. However, some analysts believe that investors react, because the Google ad click rate drop, may improve the quality and the company advertising, the move will help enhance its long-term profitability, and therefore should not be too early to draw a conclusion.
According to the investigation report
network research firm comScore Inc. released on Monday showed that in January Google ad clicks a total of five hundred and thirty-two million times, 7.5% less than in January, compared with the same period last year, down 0.3%. This is comScore Inc. since six months ago to statistics since Google first recorded year-on-year decline in advertising rates, before the company’s ad click rate has been increased, the amplitude ranged from 12% to 60%, and in December last year, the ad Click numbers are before the January increase of 12%.
analysis mostly negative
latest data caused different interpretations of the market, most of which are negative. Many analysts believe that the overall slowdown in the U.S. economy, so that Google has also been dragged down. Shuchat, an analyst at UBS, said that advertisers no longer advertise on the site, or reduce the number of keywords to search, leading to the decline in the number of clicks advertising. Some analysts pointed out that due to concerns about the economic outlook, consumers reduce online shopping, so that they have to click on the Internet advertising also declined.
is particularly bad for Google because it is the same as other search engine operators, whose operating income comes mainly from online advertising. Click on the ad is also known as the "charge click", when the Internet users click on the relevant search ads, the network will have revenue. Google’s turnover last year was $16 billion 600 million, most of which came from ad clicks for sponsors. Therefore, any number of clicks on the decline in advertising, will make the search engine companies, including Google, including the development prospects cast a shadow.
, however, some analysts believe that it is now said that the decline in online advertising, it is too early to say, because they did not see the obvious evidence of advertising to reduce online advertising spending.
recession is too early to say
analysis quoted comScore Inc. report said that Google’s online search activity continued to rise in January, an increase of 53%, higher than the previous year, an increase of 49% in January. Of course, not all these search and shopping, but as long as there are people, there will be opportunities for advertisers, though due to the economic slowdown and the need to cut spending, will also give its intended for radio, TV or newspaper advertising to accelerate the transfer to the Internet, so the >