The current below expectation results which saw about $20 billion or so wiped off the value of the company has prompted some respected tech stock analyst to start speculating that the dominance of search by Google could be on its way out, though I don’t quite believe them that this will happen but it cannot be completely ruled out but I think it will take at least 10 years or so before Google’s dominance starts to wane.
According to Eric Jackson, “Google could disappear in five to eight years and disappear in the sense that Yahoo used to be the king of search. Now, for all intents and purposes, Yahoo has disappeared,” Jackson said Thursday on CNBC’s “Squawk on the Street”.
Once of the factors Mr Jackson use to illustrate the fact that Google maybe be on its way out is the fact that its finding it difficult to monetise mobile, just like Facebook.
One of the cash cows for Google is its cost per click advert, which pitches advertisers again advertisers, gone are the days when advertisers are paying crazy sums for keywords, though Google’s advert sales rose but what advertisers are paying for each click is down.
Google reported in its quarterly earnings, which were released Wednesday, that its cost per click (CPC) was down 15 percent in the third quarter. In UK one of the most hotly contested keywords is dating related keywords, it cost a fortune to get a dating related keyword to the first page with the dating site revenue being squeezed because of the economic situation of the country, what advertisers can afford for CPC is forced down.
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