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Adwords News: Google’s unbelievable slump

Home » Adwords News: Google’s unbelievable slump
Google’s Unbelievable Slump

Unbeatable. Unshakeable. These are two words that best describe Google despite their reported slump in earnings.  It has been reported that Google lost 20% in net profits last year amounting to $2.18 billion. It was disclosed by RR Donnelly, Google’s bookkeeping firm that shares plunged to a measly 8% and has affected trading after 20 minutes the report came out. But what is worse  is that,  RR Donnelly allegedly reported this by mistake!

The news poses everyone a question. How secure is Google? Well first things first – Google is insanely profitable, unshakeable, unbeatable. It was reported that their overall revenue grew to 45% or $14.1 billion. That is not bad considering that this statistics is incomparable to Bing’s operating loss of $1.45 billion last year.

However, this hullabaloo proves to be critical in PPC and has prompted investors to sell their Google shares.  Google has officially announced the sudden fall of average clicks for paid search by 15%. While this sounds good news for advertisers it looks like a scary thought to Google and its investors. The news has also affected Facebook and Yahoo bringing its prices down.
Blame this on the new trend. Google’s mobile business is growing and is gaining $8 billion yearly with profits of $2.5 billion last 2011. The shift from desktop to mobile is the culprit to the fall in average cost per click. That’s because mobile clicks are least expensive than the usual pay per click cost.

In this light, we can only expect more mobile advertising activities lead by Google in the new year. This will serve as a new business venture for many as mobile websites will be the hot new trend. It will open the doors of mobile PPC.
So, get your high-end mobile phone handy as Google is ready to pump up the industry with new, creative and beta testing ideas.

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