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Sunday, October 12, 2008
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Google ads in trouble?

The news of Google’s Ad Shares falling this week with further speculation on Google’s fourth quarter down to 40% from 50% in years past, see Google's U.S. ad share drops for first time in two years for more details.
Google’s Ad shares may not be climbing at the same rate as years past but they are still climbing. However, the slow down could be expected. The IAB, Forester and Gartner have all predicted increased advertising on Social Networking sites for 2008. This is not a surprise as the Social Networking sites have grown the advertising is becoming more sophisticated and targeted giving advertisers a huge potential audience for ads.

But keep in mind that search advertising is still considered one of the best places for conversions as search users are much more likely to convert as they are further along in the buying process then Social Networking users. I don’t believe that Google’s Search Ads have anything to worry about. And while Google figures out the whole Social Network ad delivery system they may dip for the moment but that will only be temporary I’m sure.

Social networking inventory

Useful answer?
0

One of the reasons that Google had an ad downturn is that they went ga-ga for MySpace, wasted a bunch of money on it, and now, "social networking inventory is not monetizing as well as expected."

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