As with any large company, there are many reasons. Most worrying for shareholders is the one that the dinosaurs of print can most sympathise with. Google butters its bread by selling clicks related to ads served on its sites and those of its network. For the sake of the analogy, think of these as newspaper ads. The more valuable a page becomes, the better for the publisher selling the space. Yet in the second quarter that real estate declined in worth. Google says that average cost-per-click has fallen by 6 per cent over the past year. And it fell 2 per cent from the first quarter, implying an even greater annual decline. The reason: More people are using Google on their mobile devices. And a customer using a tiny screen on the go is worth less to advertisers than one sitting down in front of a computer.
Posted on: Sun, 21 Jul 2013 11:28:11 +0000
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