Less Traffic, Less Revenue: A Google Lesson
November 14, 2009
The confidence of some people is remarkable. There are some high profile rich people who think that Web site traffic is easy to get. Most pipe dreams begin with an assumption that users will visit a Web site. The reality is that getting and keeping Web traffic is tough, even for outfits with a big name brand.
A good example of the “no traffic, no revenue” challenge appears in “AOL’s Google Revenue Is Crashing”. The point of the article is that AOL’s Google revenue is declining. The reason for the decline is irrelevant. Focus on this passage:
Why the decline in Google revenue? Almost half of the decline last quarter is because of lower search query volume — in part because of the decline of AOL’s access business, which drives people to AOL search by default — and the rest of the blame goes to lower revenues per search query, AOL says in its filing. AOL’s Google deal runs through December 19, 2010, so there is some time to figure out what’s next. But as Google (and Microsoft, another potential search partner) see how much leverage they have over AOL in these arrangements, it’s hard to see AOL’s next search deal working out even as favorably as the current one.
With some organizations confident their content and name recognition will generate cash, I wonder if the AOL situation will make much of an impression?
Stephen Arnold, November 14, 2009
I want to report to the Employment Standards Administration that I am unemployed; therefore, this article is a freebie. Disclosure is so satisfying.
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