With Google making their gaff and releasing their earnings numbers in the middle of the day as opposed to the end of day, it caused a bit of excitement. So much do in fact, that trading on their stock had to be halted, due to their earnings being lower than expected.
The market had already been aggressive with the stock, estimating positive growth in the company. With the final numbers coming in lower than what was expected, it caused the knee jerk reaction that the stock experienced. But just how is it, that one of the most powerful online properties failed to increase earnings when they picked up notable acquisitions like Motorola? Perhaps the answer isn’t as complex as it seems on the surface.
When it comes to search there is a handful of (viable) options for being found online, Google, Bing etc. But one of the avenues that mostly levels the search playing field is paid search, or PPC. Pay per click is almost the gear equalizer, as it’s limited to daily budget and doesn’t have any real bearing on age of domain or rely on heavy back linking strategies, you just need to write a better ad than the other guy. The issue we’ve been seeing in the last 8 months or so is the cost per click on client campaigns, previous costs ran in the 35 to 40 cent range where now we’re seeing increases to the 3 dollar plus range.
It makes it vastly difficult for anyone who doesn’t have a budget of several hundred dollars, equating to budgets of several thousand dollars per month. Short term gains are much more difficult for the mid to small business owner and who knows, maybe a direct correlation was their bottom line.