SAN FRANCISCO - New data confirming slowing growth in Google Inc.'s paid clicks renewed debate Thursday on Wall Street over whether the Internet search company's revenue can quickly adjust to changes it made in how it generates clicks.Citing data that comScore Inc. released after the market closed on Wednesday, analysts said growth in Google's click-through rate has nearly ground to a halt.
Google's stock dropped $16.09, more than 3.5 percent, to $442.10 in afternoon trading.
The click-through rate grew 3 percent in February compared to a year earlier, and January saw no increase compared to January 2007. Several months earlier, the rate was growing 25 percent to 40 percent compared to a year earlier. The new data is in line with click-through declines Google reported last quarter.
Google, which gets paid when users click on a sponsored ad that comes up as the result of a Google search, has reported steadily rising per-click revenue.
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Because of how vastly used Google is, advertisers paid large bucks to have there high motion, eye popping or just plain regular ads on Google webs sites, such as blogs, You-tube, etc. Everytime a web site visitor clicks on an ad Google rating go up and more advertisers will pay more to place there ads on Google sites. Google will also pay site and blog owners if there site generates clocks galore. The click rate has recently level off and Google are saying that they are going to lower it themselves in order to generate more meaningful clicks. This encourages better ads which consumers will investigate further and possibly buy from; Google wants to discourage the ads which lead to more ads, which get in the way of web viewers desired content. Basically Google wants to sift out the ads and self-clickers that corrupt the click and pay system.
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