Paid Clicks Slump But Mystery Why...
By Martin Kelly, Search Engine Room
SOMETHING of a search sensation in the US this week when a private client report by ComScore suggested that the number of paid clicks on AdWords was flat for January compared with the previous year and actually down on December (which would include Christmas shopping). Google stock got hit by fears that American consumers are cutting their internet spend due to the maybe-it is, maybe-it-isn’t US recession.
However, ComScore later said it believe the number of clicks was flat because Google is actually serving less ads as it increasingly focuses on relevance (although that should lead to a greater click-through rate and more clicks...).
ComScore Senior VP. James Lamberti said: “I'm not saying that Google isn't experiencing macroeconomic issues, but I just don't think that report reflected that." Citigroup analyst Mark Mahaney concurs, speculating that the drop in paid clicks is a combination of Google's attempts to improve the "lead quality for advertisers and the user experience for searches" and "a macroeconomic dampening of commercial queries by searchers." Google has yet to comment.
Search Engine Room: February 28, 2008
