Google’s click performance

Wired has an analysis of what happened to Google’s share price when it became known that the growth in clicks per ad has stopped growing. Google’s stock closed down over 3% on news that the February click through rate grew only 3% in February compared with a year earlier and January didn’t rise at all on a year earlier. But Wired points out that the figures are the result of some changes in Google’s advertising policies.

The Mountain View-based company said in January that the drop in click-through rates is a result of its efforts to boost the usefulness of each click to its advertisers’ sales performance. For instance, the company decreased the space around a word that would result in a click, so more clicks would be intentional.

Some are arguing that Google’s advertising should rise even faster with the changes:

Rob Sanderson, an analyst with American Technology Research, said per-click revenue will rise immediately if advertisers see more value in each click, because they’ll pay more for them at auction.

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