Wednesday, 27 February 2008

Google Shares Drop

Google shares have dropped around 8 percent after a U.S. industry report showed a decline in a key measure for how Google gets paid by advertisers.

While some investors are alarmed, other commentators are downplaying the slump, citing factors such as:
- Google recently changed the clickable area of Adsense ads, which should mean a temporary drop in publisher income but a better long-term return for advertisers (and therefore publishers).
- comScore had recently revised the way it measures visits to Web sites, which made comparisons to previous trends difficult.
- This isn't a good time of year for tech stocks, and the market isn't doing well overall anyway.

Personally I'm not too concerned. I don't think there's any need for us publishers to panic (my Adsense earnings are actually up at the moment). I'd even consider buying Google stock right now while the price is down.

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