Google's Stock Above $1,000 While Their Customers & Partners Are Upset

Oct 21, 2013 • 8:15 am | comments (17) by twitter Google+ | Filed Under Google News & Finances

GOOG Earnings StockI am sure you've all seen Google's stock price soar to $1,011 on the closing bell on Friday. For stock owners, they are very happy. For Google employees, they are very happy. But for their advertisers and partners, they are not so happy.

Pretty much all the advertiser and webmaster threads on the topic of Google's earnings report and stock price were on the negative side.

We have two threads at WebmasterWorld, a Cre8asite Forum thread, a Hacker News thread and much more.

The tone is just negative. Advertisers claim their CPCs (cost per click) are going up, while Google claims they are going down. Publishers are claiming their earnings are dropping to all time lows, while Google's partner earnings are on the all time high.

What is going on? Is it the algorithm weeding out the bad performers and encouraging the best performers? Is it Google taking more and more from those that feed it content?

At Cre8asite, one said:

Google's cost per click income is down. But their revenues are way up from clicks. WAY UP Duh--that means more people are clicking. But our accts have totally different experiences:

At WebmasterWorld, one said:

Anyone else find the 26% growth in paid clicks interesting?

Market share in search is roughly flat for Google. Comscore shows relatively flat traffic YoY. I hand checked July and August YoY numbers...minimal traffic growth..single digit percentages at best.

So, 26% more paid clicks on relatively flat traffic means...?

How do you feel about these numbers? Can you share your own story?

Forum discussion at WebmasterWorld, Cre8asite Forum and Hacker News.

Previous story: Google Hangouts iOS App: Animated GIFs & Calls



10/21/2013 01:19 pm

The problem with Google is the more people who are pushed into adds means the PPC increases per click = less profit margin for the advertiser. Because google needs to increase profits month on month it will eventually implode as the advertisers will eventually be paying so much per click their profit margins are wiped out and they all end up working to survive only. It can’t go on forever and if corporate entities continue to bleed small business dry, unemployment will spike and no one will have the money to buy the products the companies want to sell/advertise. If a company wasn’t run by shareholders they would say lets maintain, shareholders need more and more until the whole thing breaks down and its starts up again with a different company. Its just not sustainable, I hope BING doesn’t give Mr Cutts a job on that day and the people at the top go down with the ship…


10/21/2013 01:24 pm

Google has planned to move all partner's move to PPC because it help google more profitable than SEO that's why Google updating day by day his algorithms


10/21/2013 02:37 pm

Profits are higher because Google is displaying more paid ads in search results and publishers have reported big, and I mean big, drops in earnings. Soon we will see all paid ads in the search results when Google has enough Adwords users to do so. It will be almost like Google Shopping, which is all paid now, with the exception being queries that have no or few relevant paid ads. Basically organic search is experiencing a slow death in Google, IMO.


10/21/2013 03:17 pm

"Can you share your own story?" The story is very simple - Google appeared to be unreliable partner and, as with any unreliable partner, I will consider any opportunity to replace it. I was Google fan, but not anymore. So, just waiting for the opportunity.


10/21/2013 03:49 pm

It's Bing's time to jump on the band wagon and take advantage of Google's weakness. Since Microsoft's main source of income is via software, hardware i.e. Xbox etc in comparison to Google where their primary source of income is via paid ads. Bing has the opportunity to take lead on this one for sure since its criteria and business income is not primarily dependent from paid ads (since Bing belongs to Microsoft and they have many other sources of income as a corporation). Resulting to a more business friendly search engine with no shady underlying agenda behind it all and most importantly not doing harm to ''us'' the customers. Do you remember a short while ago they tried to get rid of Bill Gates from Microsoft? Could this have been forecasted by the top Market analysts of Microsoft regarding Google digging its own grave and wanting to clear the way of Mr Gates (probably being an obstacle for Bing's opportunity to rise?) I am just speculating here....


10/21/2013 03:57 pm

My CPCs are down and clicks are up. Of course individual experience is different, it varies across keywords. What I'm seeing is the very generic keywords are now more expensive so if you've got a poor optimised adwords campaign you are probably doing worse now simply due to increased competition on those keywords. On the slightly longer keywords (3 words or niche) I'm seeing it get better. Its not really surprising you see more negative comments, people see Google are doing well when they aren't doing as well and feel the need to moan about how unfair it is to them. Again, its going to vary a lot based on the individual keywords and market areas far too much for any one individual or any one campaign to be anywhere near representative.


10/21/2013 04:51 pm

I can tell you as the person who doesn't chase any keywords. Very broad traffic. I mean as broad, as the internet is. Difference in eCPM can be up to 75% on daily graph. So one day it can X and the next day X + 0.75*X and the next day X again and so on. I see this during the 1.5 years. How is this possible on very broad traffic where averages should remain approx. the same ? Averages can go slowly up or down, but how can they jump so crazy ? I just don't know what to expect tomorrow even if there is no any updates.

F Barry

10/21/2013 04:53 pm

Barry you $%#$^%& %()()&^^%@ told many times that Google is rigged, they manipulate search to increase clicks on ads. I's rigged and Mutt Cutts is the biggest liar and cheat since Maddoff.

love them ads

10/21/2013 05:38 pm

It´s so simple. Make sure your adwords are laser targeted but the organic serps crap. People know the adwords are good so instead of wasting their life looking in the top 100 serps for something that might just do they have a laser targeted adword right under their nose. This is not rocket science. This is bait and switch played out over the long term!


10/21/2013 06:35 pm

Hey Shmarry, do u still believe that Google has unbiased results? Yes or no?


10/21/2013 08:23 pm

There has been something wrong with Adwords for a while. There are too many random or invalid clicks. Its been like this for years and Google has not solved the problem. It does not need to because it all earns revenue. I am not surprised their share price has gone up while their clients are pissed.


10/22/2013 01:02 am

bloody penguin and panda money. webmaster hate is the payment for such "high authority" serp and "good business practice".


10/22/2013 01:10 am

2012+ = it not real google, it somebody just cheating us what it still google.


10/22/2013 08:22 am

Other advertisers might only be scheduling their ads to run on certain days, might be running out of budget e.t.c. You might be getting your clicks in the evening one day, but using your entire daily budget during working hours another day (the clicks can be twice as expensive during the day). So lots of possible reasons, btw your comment about averages is nonsense, there is no mathematically reason for them to go up or down slowly, thats a rolling average that does that ;)


10/22/2013 02:56 pm

You realise that Google don't set the adwords prices, its set on an auction basis? That means it only goes up if advertisers increase the amount they are willing to pay per click. They wouldn't do this to a point where they aren't getting a return on investment. But hey, who am I to let a complete misunderstanding of how Adwords works interfere with your paranoid rant!


10/23/2013 05:23 am

How can Google be unbiased?


11/07/2013 12:38 pm

You are correct

blog comments powered by Disqus