Adsense worries: What to do when Google's stock crashes?

I've been growing concerned about how adsense is going to perform in the coming months due to the fact that my adsense has been down quite a bit and wondering if there is any relationship to the housing market, oil prices, decreased consumer spending, stock market drops, etc.

http://biz.yahoo.com/ap/071101/wall_street.html

Anyone else out there getting worried?

On the bright side, Google's stock is over $700 today! I dunno... but one thing adsense always does is make me nervous... even during the good times!

 

well..to be honest..the click prices haven't been that encouraging during these bright times of google..I don't think it will have an impact on adsense.!!

 

I don't understand what you mean.. I hope not.

 

PPC all depends on relavent quailty content and the niche you are in. I get on average .34 per click. This is more then many people but then again I have high quality content and decent ctr around 4-7%. When if companies face troubles they will still advertise and will still spend the money to get the word out. I do not see this affecting adsense earnings.

 

Stocks has nothing to do with adsense.

 

how much you will get paid per click depends on your niche and how much advertisers are paying for a click to google. google shares part of their ad earning with its publishers. to the payout is not gonna be the same for all the keywords. stock price has hardly an impact on it, at least not any immediate direct impact.

 

I believe the economy has a lot to do with PPC rates. Stocks included.

So if the stocks crash and there is a huge panic you're telling me our AdSense earnings will remain the same? LOL.

Strong economy = More people that want to spend money = More people that might want to spend money on advertising.

Adsense = Advertising Platform = If more people want to advertise, rates can go up = better PPC due to more competition.

It gets a little more complicated, but I've taken all my economic classes.

 

I think that Google is so much of a global company that even large changes in the US economy would affect it that much. If the stocks do start dropping though would that mean we would all have to go elsewhere for our advertising needs?

 

I work for a investment bank in singapore. Our opinion is mixed here, we see a lot of potential growth in asia however US economy will see a slowdown atleast till end of 2008. Thats on the minimum side.

again, the sub prime crisis is not over. Fed rate cuts are only going to pump the liquidity in the market but won't affect the mortage crisis by any case.

Its like renovating your house before its going to break down. Things are not going to change in the housing market so soon. The issue is with the job losses, overall incapability to pay mortage interest and thereby directly affecting bank's profits.

This year US banks performed the worst among all sectors even below wall street expectations. I dont think its going to improve.

I hold major stocks in US but i am bullish about google. Google will continue to do well however the only concern is again the consumer spending in US is continously down and it will continue to be like this even in holiday season.

I would say it would look up a bit during december but it will soon bottom out once holidays are over.

This will directly impact advertiser's spending since there is no demand in the market who wants to bid high and spend money? the budgets would be shrinking as the market stops responding.

I strongly expect a massive recession by April 2008 in USA and will trigger the recession in rest of the world. It will take the whole of 2009 to get back to the stage where we started off in 2006.

Just my 2 cents from my Investment desk

 

Very well stated! Less people buying = smaller advertising budget for companies = smaller adsense checks. I personally think the drop in adsense revenue is due to the economy winding down...

 

If you are a supplier to Wal Mart and Wal Mart stock prices crash, what will you do?

Are you going to stop your supplies immediately? Or are you going to look for alternative buyers?

I know if Google were to close shop, then I will just change the codes on the ads to Yahoo or Microsoft

 

It depends on what caused WM stock to crash, whether it was WM specific or the retail industry in general.

 

nice information.

 

If the whole eonomy falters then, at least logiclly, cpc might go down as advertisers reduce their marketing budget.

 

Yahoo & Microsoft ad solutions totally suck. It's amazing Yahoo is still in business at all. Microsoft? Well, they are just lame.

This is going to affect all advertising across the board. Get ready people.. it's coming. The Adsense Recession is on its way. Time to find more baskets!

 

I don't think PPC prices will be effected by GOOG's share price, but if the overall economy is weak, then overall, companies will cut spending on advertising, lowering the overall demand for clicks, and thus lowering the PPC. GOOG's stock is inflated, and has been, and right now nobody cares (yet) because GOOG still has cool-factor. Of course their stock will fall - probably by 30%-50% over the next 12-24 months. But that doesn't matter. What matters is consumer spending -> advertising -> PPC.

 

It is Adsense that could drag GOOG price down, not the other way around.

 

Very interesting information here. What effects the world economy will effect Adsense revenues and Google's stock price.

We all see fluctuations everyday in our sites' earnings. What causes that besides the fickle traffic? Advertising budgets based on at least two factors: How many sales they made last month and how many sales they expect to make this month.

If sales go down over several months, advertisers can't help but pull back. Or if this is not a particular advertiser's season for sales, they scale back. The reverse is true for good times. Of course, there are so many advertisers right now, and new ones everyday, that as one pulls back another increases their ad budget. This growth cycle will slow down, especially if the consumer has less money to spend due to the housing crisis, a war, or any of the other economic crisises that do occur.

So, make your money with Adsense, but know it will go up some days and months and it will go down some days and months. And don't forget to be a good consumer...

 

I think everyone should just worry about their websites and leave the stock market alone Even if you worry, even if you don't, you can't do anything to influence it

 

Exactly and the holiday seasons are coming = more advertisers.