Google is slowing down

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August 7th, 2008 by Click Consult

In another chapter of Google & Microsoft's toe to toe bout, both Media and software giants were set to announce the last quarter profits within hours of each other. By the close of business Thursday, the only news was Google and it wasn't all good as expected.

Expected results are the key. Google announced a 35% rise in profits, marginally below the rates projected by city analysts. While growth was steady across all of Google’s key performance indicators, this missed projection has stirred thoughts that the Giant of Search is vulnerable to the current economic climate. With this knowledge, share prices fell 8% as fears that even Google could not avoid the crunch.

News for marketers using the Google adwords Pay Per Click (PPC) platform, was not all good either. A 19% growth of click on Google’s PPC ads when compared to the same period last year looks strong, but this conceals the facts that there was a 1% drop from the pervious quarter. Seasonality will affect this, but growth from Q1 to Q2 2007 was around 6%, so there are more sinister forces in action here.

The long term of search marketing is still strong, but these are trying time for all businesses ahead. Google is likely to be the last to worry as while many companies are not just slowing but going backwards, the spend in online marketing is still strong. The transparency of online spending has made it easier to justify in these belt tightening times.

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