Google’s lost ad clicks: Sign of recession?
February 27th, 2008 by Thomas
Reports from comScore that web users are clicking less on Google’s search adverts have prompted talk of internet recession. The analyst has reported clicks from US consumers fell by 0.3 per cent in January compared to the previous year and dropped seven per cent since last month. “There are pretty strong signals now that the economic slowdown is having impact on consumers’ behavior online and therefore having a negative impact on Google,” the New York Times reported Clayton Moran, an analyst with the Stanford Group saying. However, Bill Tancer, general manager of analysts Hitwise disagreed. He said a slowdown would be more accurately illustrated by a drop in traffic going from the search engine to retail sites. “If we focus in on daily data (year-over-year comparison) we see that Google traffic to retail is also up on a daily basis when we compare January/February 2007 with 2008.” Yahoo! has seen its rate improve and comScore reported that clicks on its adverts rose in January by one per cent.
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