Information from an AP article by Amanda Fehd
Analyst said growth in Googles clickthrough rate has nearly ground to a halt.
Google stock at the time of this writing was down $14.11 or 3.1 percent to $444.08 in afternoon trading. The clickthrough rate grew 3 percent in February compared to last year. January saw no increase compared to January of last year.
Several months earlier the rate was growing at 25 to 40% compared a year earlier.
Google said in January the drop in clickthrough rates was 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.
Analyst disagree on how long it will take Googles per click revenue to adjust to any increased value per click it has created.
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 will pay more for them in auction. “It’s not clicks that advertisers are really buying, its what these clicks get them, which is sales conversions.”
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