What Effect will the recession have on Google?

Discussion in 'Google' started by maximillionerz@gmail.com, Apr 21, 2008.

  1. #1
    In the economy, will major internet relied businesses such as google suffer or will it stay the same? I believe it will grow because mroe people will be desperate for money and thus they will flock to adsense for a quick fix solution.
     
  2. The Stealthy One

    The Stealthy One Well-Known Member Affiliate Manager

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    #2
    By the looks of the first quarter, I think Google will do Ok. :)
     
    The Stealthy One, Apr 21, 2008 IP
  3. Germz

    Germz Peon

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    #3
    Google is a monster... and like "the stealthy one" said, looking at their first quarter earnings it seems that they will do just fine. Yahoo and Microsoft are still no threat.
     
    Germz, Apr 21, 2008 IP
  4. swedal

    swedal Notable Member

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    #4
    It might affect them somewhat, but I doubt it will have any major impact.
     
    swedal, Apr 21, 2008 IP
  5. joebert

    joebert Well-Known Member

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    #5
    I think if anything a recessin will actually help Google.
    More people out of work means more people looking for things means more people clicking on things.
     
    joebert, Apr 21, 2008 IP
  6. Jim4767

    Jim4767 Prominent Member

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    #6
    How true. What did their stock jump — wasn't it 20% in one day? — after their earnings came in above projections.
     
    Jim4767, Apr 21, 2008 IP
  7. killer2021

    killer2021 Peon

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    #7
    You guys are forgetting the big picture:

    a recession means lack of consumer spending (started by the housing bubble), which means less sales, which means less profit for companies. When companies start loosing profits they start cost cutting and what do you think they'll cut? Advertising.
     
    killer2021, Apr 21, 2008 IP
  8. rcj662

    rcj662 Guest

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    #8
    I think it will hurt the small advertisers they will spend less money. Google will do fine
     
    rcj662, Apr 21, 2008 IP
  9. mikelaw

    mikelaw Peon

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    #9
    People will probably cut advertising but they may see Google as cheap advertising and spend more on Adwords.
     
    mikelaw, Apr 21, 2008 IP
  10. VideoKid

    VideoKid Peon

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    #10
    The little guy usually always gets thumped. :( I can't see Google hurting anytime soon.
     
    VideoKid, Apr 21, 2008 IP
  11. modeca

    modeca Peon

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    #11
    For my 2 cents worth:

    I think that big corporations/ Adwords spenders will start cutting back on their advertising budgets. This will obviously affect Google's revenues.

    However it could have the effect of making search more friendly/competitive for the small/medium business owner/SEO/webmaster.

    Overall I think Google is way too big to fall over even in a serious economic recession.
     
    modeca, Apr 21, 2008 IP
  12. gvalenciano

    gvalenciano Banned

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    #12
    True. I personally stopped using the content network from my adwords account (to cut budget and minimize clickfraud).I now exclusively advertise in googles search engine with a $20 daily budgte.
     
    gvalenciano, Apr 21, 2008 IP
  13. Tyler Banfield

    Tyler Banfield Well-Known Member

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  14. Jim4767

    Jim4767 Prominent Member

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    #14
    No, I'm not forgetting that at all. The technical, economists' definition of a recession looks back to the last two fiscal quarters. The numbers are not yet fully in, but some economists are already saying we are "in a recession". Remember, that is based on the previous six months. But during the previous three months — that is, well along in this recession that some say we are in— Google came in with earnings that surpassed all expectations and led to a giant one-day rise in their stocks. Not every business automatically goes down in economic downturns.
     
    Jim4767, Apr 21, 2008 IP