Google Adsense pay for click has declined
All things considered, the advertising model for paid search has held up fairly well. People continue to click on paid search ads, but there has been weakness in keyword pricing. Online advertising agencies and Google AdSense affiliates suggest that the primary causes for decreasing keyword pricing were lower paid search conversion rates that prompt advertisers to bid less for keywords; and cash flow and working capital constraints forcing advertisers to lower the amount spent on advertising. Brands thought that consumers would click on fewer ads because of the poor economy, but in fact people continue to click on as many ads as they did in a strong economy. Consumers click to compare prices. Since it takes more paid clicks to get a sale on some items, advertisers began bidding less on keywords. “The number of clicks remains strong,” Lindsay said. “It’s just taking longer to get a sale, so the amount they pay for a click has declined about 5% to 10%.”
MediaPost Publications – Google Makes More Cuts; Keyword Prices Decline – 01/21/2009
