Google will gain, but search slows

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googlesucks_small.jpgADOTAS — Google expects that some hard-hit customers will lean toward search advertising, but preliminary numbers are frightening for search.

Search spending fell 8% in the last quarter of 2008 compared to the year before.  According to Efficient Frontier, it marks the first quarter of negative annual growth since the company began tracking it.

Google is still expected to announce double-digit revenue growth in the fourth quarter. EMarketer has said that search advertising will still grow 14.9% in 2009. But efficient study also found that retail marketers increased spending 9% in the fourth quarter, compared to 2007.

And btw, is it me or do these ex-Google complaints seem rather…petty?

— Express your opinion, comment below.

4 COMMENTS

  1. Of course if fell! Liquidity crisis, no? We are going through a period of time when everything, i mean every everything is being repriced. This means that CPC is being repriced as well. Think of a CPC as an asset for a Search company just as a bank puts debt on their books as an asset and you will quickly realize that the Search Industry will level off much quicker and see growth faster than most industries. When this will happen no one knows. Shoot we are just going through Phase 2 of bank bailout, will there be a Phase 3, maybe a 4? Who knows? Already the so called “recovery” is being pushed back to late 09′ maybe even 10′. In either case there a very few industries that will fare better than search.

  2. It’s hard to believe that search advertising revenue has actually decreased. You’d think that with people hitting the web, the craze would grow. Freeware should be expected to grow due to the low income of the economic funk were going through (people get upset when you call it a recession – even worse is a depression). I wonder if advertisers are cutting back on the amount of money their willing to spend for this way of promotion, but I can’t understand why. With less money, people will stay at home, meaning more time online. Ultimately, this means more people LOOKING at advertisements.

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