Google continues its upward trend with an increase of 46% in its 3rd quarter profits this year, of which a large percentage came from advertising. Adwords and Adsense specifically. According to MSN news, Google earned some $1.07 billion during the 3rd quarter of 2007 (normally a sluggish period), stumping analysts and everyone alike.
It is not too hard to understand, when Google has already recruited a vast army of Adsense publishers to date. The same goes with the Adwords market. So if you add things up, it doesn’t take long to understand the reason behind the decreasing revenue of Adsense, and the ever tightening rules and increasing costs for Adwords advertisers. The big winner out of all this is Google, while the majority of advertisers and publishers continue to fight over what are essentially, the scraps.
To me, it is not surprising… really.
There are indications that Internet usage in the USA has peaked (even though that article was posted last year); while for many poorer nations, the majority of their population still have more things to worry about rather than surf the Web.
Compare that with the number of domain registrations over the past several years, there is no doubt some kind of peak will be reached soon. Going by the BuyDomains chart, this year (2007) alone for the first quarter, the total number of registrations has exceeded the entire domain registrations (over all TLDs), for the entire year of 2006!
Sobering thoughts. Especially if the recent posts from many of my favorite blogs are anything to go by…
The word is getting out – making money online, is getting evermore harder.
I believe this is due to natural law taking over. The law of supply and demand. Supply is outstripping demand, and the trend will continue, more and more.
When the dust has cleared, (in the large scheme of things), it will be clear who will take the lions share – Google. I’m clear on that one 🙂
If you’re involved in any form of Web business, it is very clear that creativity and innovation, harder work, more capital and investments…etc, will be needed in increasingly copious amounts.
Sobering thoughts indeed.Share This: