Is Google Sick Due to Less Ad Clicks?

Date: 02-28-2008

comScore’s latest numbers suggested a rapid slump in the frequency of clicks to Google’s ad-supported links, showing a drastic decline compared to the previous three months. Google shares have fallen by 38% since they peaked in November 2007 and fell a further 4.6% on Tuesday due to the comScore report. Several analysts debate whether the recession in ad clicks is a clear indicator of reduced online ad spending. In any case, according to comScore again, Google queries rose by 53% overall compared to last year. “There is no sign yet of a drop in the amount of traffic going from Google to retail sites,” says Bill Tancer, an analyst at Hitwise.

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