The primary reason, being cited by Eric Jackson of Ironfire, is the reported sharp decline in Google’s cost-per-click (CPC) revenue, which was down 15%, even in the face of increased ad sales. What does that reflect? Jackson believes that if CPC revenues continue to decline, it will be a precursor to decreased ad sales as more and more people switch to performing searches on mobile devices.
This is in line with other observations that desktop sourced searches noted their first decline. Mobile ads are not as popular with advertisers, despite lower cost, because the ads are not as prominently displayed as can be done with a desktop. With a continued trend of a decline in desktop searches and a rise in mobile searches, Google faces a continued decline in CPC. That opens the door for other players to offer news ways for consumers to search. Jackson thinks that Apple may emerge as a contender in this realm.
So, while technology may one day change the landscape where we may no longer say, “Let me Google that for you.” We have no doubt that Google will remain highly relevant in the search space.