Fears a slowing US economy may be hitting Google have led analysts to cut the share price target for the firm.
The move came after research firm Comscore reported a sluggish January in the viewing of paid-for-advertisements on the Google site.
The total clicking on to Google's paid adverts was 532 million, down from 533 million a year before, Comscore said.
UBS cut its price target from $650 to $590, and BMO from $690 to $590. Google shares fell 4.57% to $464 on Tuesday.
Its shares reached a peak of $747.24 in early November 2007 and were just below $700 as 2008 began.
However, now it appears that shares in Google may be getting dragged down by the sluggish US economy.
Showing posts with label Google Ads. Show all posts
Showing posts with label Google Ads. Show all posts
Monday, August 11, 2008
Google growth isn't clicking
Fears that Silicon Valley's Internet prodigy, Google, may be getting a few gray hairs were triggered Tuesday by a negative report about its ad business that sent its shares to a nine-month low.
The once high-flying stock closed Tuesday at $464.19, and has plunged almost $300 from its high of more than $740 in November, amid worries the search giant may not escape the effects of the slowing economy.
Google's paid "clicks" on search ads fell 7 percent between December and January and have not grown from the previous year, according to comScore, which measures Internet audiences. That report sent Google's shares down 4.6 percent Tuesday, and followed Monday's 4.2 percent fall.
That Google is a moneymaker is not in doubt, but investor confidence in its ability to keep that growth stoked has ebbed.
The once high-flying stock closed Tuesday at $464.19, and has plunged almost $300 from its high of more than $740 in November, amid worries the search giant may not escape the effects of the slowing economy.
Google's paid "clicks" on search ads fell 7 percent between December and January and have not grown from the previous year, according to comScore, which measures Internet audiences. That report sent Google's shares down 4.6 percent Tuesday, and followed Monday's 4.2 percent fall.
That Google is a moneymaker is not in doubt, but investor confidence in its ability to keep that growth stoked has ebbed.
GOOGLE ADSENSE EARNING TIPS
Placing Google adsense ads on your website has to be one of the easiest ways to generate income with your site. Signup is free and all you have to do is put the ads on your site.
But easy does not always mean simple.
Google makes it easy to sign up, generate an ad and put it on your site, however, it's not always so simple designing your site for interest, finding high paying keywords and placing your ads so that they attract maximum clicks.
Here are a few surefire tips that will help draw interest to your site and your ads while helping you get the clicks that will make you money.
1. Build content rich sites
Content rich sites do several things for you. They keep viewers on your site because you are providing information of interest. It's also important to keep the information refreshed periodically with up-to-date and current content. This is not only useful for your viewers, the search engines like it as well.
Sites containing useful content will also help establish you as an expert in your field allowing viewers to respect your opinions and suggestions. But most importantly, good content will keep your viewers coming back to your site. They will bookmark your site more often and notify their friends a lot more.
2. Research and use higher paying keywords.
Develop site pages using topics that contain high paying keywords while keeping the keywords relevant to your topic.
The Overture website has a free 'keywords bid tool' that is excellent for showing you what advertisers are paying for keywords.
For example, using this tool I can see that the keyword 'pet medication' has a maximum bid of $1.51 while the keyword 'pet name' has a maximum bid of $.11. If I were looking for informational pages to add to my pet site, the clear choice here would be to develop a page about pet medications and optimize that page for the keyword 'pet medication'.
3. Place your ads in the upper left hand quarter of your website.
Studies show that people almost always scan your site from the top left working down. Placing a vertical skyscraper ad in that section can help increase your click through rate from 2% to as much as 30% or higher.
4. Don't use horizontal banners or ads.
Google recommends that you use vertical as opposed to horizontal ads. Web surfers see lots of horizontal banners and ads and they almost instantaneously avoid them.
According to Google, wider ad formats such as the large rectangle and inline rectangle also tend to perform quite well. This is probably due to the fact that they are more reader friendly allowing you to read more text at a glance without having to skip a line and return to the left margin every few words.
My experience is that positioning these ads just before or just after your main content can increase your clickthrough rate substantially.
5. Avoid the Dead Zones
Google research has shown that there are zones within your site that won't generate clicks. These areas are the top right of your site, the bottom right-hand corner and the very bottom. Ads in these areas are often ignored. Keep your ads to the upper left, and center or just above or below your primary content.
6. Coordinate the ad colors to match your site colors.
Google adsense offers an array of colors that you can use to display your ads. Choose the two main colors of your site and use those colors for your ad. Keep the URL link of the ad in blue since this is the link color that most viewers are use to. The idea is to blend your ads with your site content so as to invite more clicks.
7. Follow the adsense program policies to the letter.
Google keeps a close eye on how their ads are displayed and they will cancel you immediately if you break the rules. Google adsense is an excellent way to bring in some extra revenue so don't risk losing a good thing.
But easy does not always mean simple.
Google makes it easy to sign up, generate an ad and put it on your site, however, it's not always so simple designing your site for interest, finding high paying keywords and placing your ads so that they attract maximum clicks.
Here are a few surefire tips that will help draw interest to your site and your ads while helping you get the clicks that will make you money.
1. Build content rich sites
Content rich sites do several things for you. They keep viewers on your site because you are providing information of interest. It's also important to keep the information refreshed periodically with up-to-date and current content. This is not only useful for your viewers, the search engines like it as well.
Sites containing useful content will also help establish you as an expert in your field allowing viewers to respect your opinions and suggestions. But most importantly, good content will keep your viewers coming back to your site. They will bookmark your site more often and notify their friends a lot more.
2. Research and use higher paying keywords.
Develop site pages using topics that contain high paying keywords while keeping the keywords relevant to your topic.
The Overture website has a free 'keywords bid tool' that is excellent for showing you what advertisers are paying for keywords.
For example, using this tool I can see that the keyword 'pet medication' has a maximum bid of $1.51 while the keyword 'pet name' has a maximum bid of $.11. If I were looking for informational pages to add to my pet site, the clear choice here would be to develop a page about pet medications and optimize that page for the keyword 'pet medication'.
3. Place your ads in the upper left hand quarter of your website.
Studies show that people almost always scan your site from the top left working down. Placing a vertical skyscraper ad in that section can help increase your click through rate from 2% to as much as 30% or higher.
4. Don't use horizontal banners or ads.
Google recommends that you use vertical as opposed to horizontal ads. Web surfers see lots of horizontal banners and ads and they almost instantaneously avoid them.
According to Google, wider ad formats such as the large rectangle and inline rectangle also tend to perform quite well. This is probably due to the fact that they are more reader friendly allowing you to read more text at a glance without having to skip a line and return to the left margin every few words.
My experience is that positioning these ads just before or just after your main content can increase your clickthrough rate substantially.
5. Avoid the Dead Zones
Google research has shown that there are zones within your site that won't generate clicks. These areas are the top right of your site, the bottom right-hand corner and the very bottom. Ads in these areas are often ignored. Keep your ads to the upper left, and center or just above or below your primary content.
6. Coordinate the ad colors to match your site colors.
Google adsense offers an array of colors that you can use to display your ads. Choose the two main colors of your site and use those colors for your ad. Keep the URL link of the ad in blue since this is the link color that most viewers are use to. The idea is to blend your ads with your site content so as to invite more clicks.
7. Follow the adsense program policies to the letter.
Google keeps a close eye on how their ads are displayed and they will cancel you immediately if you break the rules. Google adsense is an excellent way to bring in some extra revenue so don't risk losing a good thing.
Google Tests New Moneymaker
Google is adding another way of generating revenue -- in the works is a new advertising network that will complement its current fraud-prone AdSense network.
The new cost-per-action, or CPA, network will pay only if net users perform a specific action such as making a purchase or generating a sales lead; in contrast, the AdSense model pays based on the number of clicks an advertisement receives and is particularly susceptible to "click fraud," the act of clicking on an ad multiple times to generate revenue.
The new cost-per-action, or CPA, network will pay only if net users perform a specific action such as making a purchase or generating a sales lead; in contrast, the AdSense model pays based on the number of clicks an advertisement receives and is particularly susceptible to "click fraud," the act of clicking on an ad multiple times to generate revenue.
Google Ads
The fastest, easiest way to start generating an online income from a Web site is with Google ads. To get started, simply apply for a free Google AdSense account and then copy and paste the code onto the pages of your Web site. Google’s system handles all the details including determining which ads to display, collecting payment from the advertisers, and paying you once a month.
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