In recent months the behemoth that is Google has started to take action to rein in non-core or non strategic business activities. In January, Google announced it was shutting down Google Print Ads, and withdrew support for Google Notes. Recently it announced it was shutting down Google Radio Automation. Google had seen these areas as less successful than they had hoped.
Clearly Google is not immune to the recession. Recent figures released by JP Morgan last November suggest that online advertising spend fell by a third in the last six months of 2008. In addition, advertisers are looking to improve return on investment and are turning to CPA and away from PPC.
With CPA (Charge per action) only costs an advertiser in response to some specific action such as a user buying goods rather than with PPC (Pay per click) which cost as soon as a web user clicks on the ad. Google’s flagship advertising service is Adsense, their leading PPC service. So the primary driver seems to be sensible economic business steps rather than involved explanations of Google’s strategy etc.
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