Google stock took a tumble because people aren’t clicking on as many ads these days. eMarketer has a good article on this topic.
Actually, nobody’s sure what’s really going on, but the stock market responds short term to rumor as much as reality.
Google is still the best at protecting advertisers against accidental clicks and click fraud so that may be part of what’s in play right now.
In the meantime Google dominates the market. It draws far more search users and search requests—and therefore search ad revenues—than all its rivals put together. An eMarketer estimate shows Google raking in 75% of US paid search advertising in 2007, up from 60% in 2006.
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