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The Google Crunch

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Filed under: Google Adwords by Dan @ 7:57 am

Talking about credit crunch has become very fashionable. Stock markets falls and rises, governments' intervention and pledges, more and more people in financial sector losing their jobs and liquidity crises are the main topic of the News and a grim reality of our lives.
Just 12 month ago financial giants seemed to be unstoppable in their quest for investments, lending and huge profits. Today, the careful use of a word “economical slowdown” is carefully replaced with the word “recession” and not only in US but around the world.
Google who first stepped an a stage around 10 years ago saw its market share and share price rocketing up, but in the last year despite an increase in a market share there was a consistent drop in share price.
Not surprisingly, Yahoo and MSN saw the same trend which on a ground of current events brings up only one question- is the world marketing network going to collapse?
There are first signs of slowdown as banks and property moguls pull out of their high cost PPC contracts as a first step of belt tightening tactics. And the worry is that many will follow…
Lack of funding and lack of spending may hit hard not only small but also big advertisers, for whom low levels of business could lead to staff redundancies and as a result to general downturn in economic conditions.
Some say that the crises will be over, but some warn that further reduction in Google's share price could be an indication of a collapse in global advertising that has not occurred since World War II and a reversal of the trend of ad dollars migrating online.

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This entry was posted on Monday, October 13th, 2008 at 7:57 am. You can follow any responses to this entry through the RSS feed.

Responses to “The Google Crunch”

  1. nancy Says:

    Today, Google is one of the biggest search engines that is being used all over the word, especially in USA. Thus most of the brands use Google for their online marketing.

  2. Rylee Says:

    I think Google will not be affected too much due to the recession and will recover its loss speedily. Also, the share price of Google will increase again.

  3. Alexandria Says:

    Due to liquidity, many people are financially losing their job and are affected by recession. But this is not a long time slump.

  4. Summer Says:

    Not only USA is affected by the Economical slowdown, but the entire world is also affected by it. And the main reason behind this economical slowdown or recession the liquidity in share market.

  5. Alexandria Says:

    Not only USA is affected by the Economical slowdown, but the entire world is also affected by it. And the main reason behind this economical slowdown or recession the liquidity in share market.

  6. Stella Says:

    America’s biggest bank, the Lehman Brothers, also got affected by this recession. People pulling back their investments from the share market are one of the biggest reasons of liquidity.

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