Google’s most important business has a huge problem
Google stock has been flat for a couple of years, and we’ve decided to take a closer look at why.
One metric that people who are pessimistic about Google like to talk about is the declining amount that Google can charge for each click on its search ads. When Google reported its earnings for the fourth quarter of 2014, it said that cost per click was down 3% from the same quarter a year before. Worse, Google said the rate of decline was accelerating. Why is this happening? We asked two experts on the intricacies of Google’s search advertising business: Danny Sullivan, the founding editor of Search Engine Land, and Ginny Marvin, one of Search Engine Land’s reporters. The following is what they told us, in paraphrase.
After the iPhone came out
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