Just saw on the news that Google's profits are falling more and more every month, maybe a sign that panda and penguin are a waste of their time and effort?
Maybe the old adage "If it aint broken. don't fix it" applies in this case and they will realise that they were better off as we all were before their ridiculous vendetta against great writers.....jimmy
No one is spending any money... online or off... despite all the spin and BS it seems to me that the whole world is still in a recession.. So not surprised..
But it also can't help that more people are deciding not to use Google in case "Big Brother" discovers that they are trying to find out how to cook broccoli or the best place to shop for organic candles.
I think most of us online have known that Penguin and Panda were wastes of time.
But like all good corporations, Google will continue to pour millions into it even if it doesn't work.
At the risk of being unpopular I still find Google to be a very effective search engine and I use it daily at work and at home. If it had screwed the pooch it would not still dominate the market
I don't think Google makes much profit from its search engine directly. They do however use it to direct traffic to their own products. Their fall in profits is concerning as it might point to a wider malaise across the internet - I hope not.
I think some people are misreading the revenue/income scheme of Google. Google revenues are up $2 Billion for Q2 2103 over Q2 2012. Income is only slightly down and that is because they are investing heavily in the new Google Phone market with Motorola.
Google earns the majority of its money from its search engine (70%) from advertisers. They have the most economical advertising model on the planet. Cost per Click, which means an advertiser can place an ad on a page and if nobody clicks on it, the advertiser does not pay for it.
I personally pay Google a whopping $250 per month but the returns I get far outweigh the costs. I pay to advertise a couple of my websites. I couldn’t get the types of returns I’m getting by using traditional methods of advertising (print, radio, tv) at the cost I am paying. I could probably get a 20 second radio spot once a week at 2am... so not worth it.
As writers, we are only looking at the Panda/Penguin from that perspective. If you look at it from my other perspective as an advertiser, it is a huge success. My ads are appearing on the most relevant pages I can afford and if they happen to appear on a page that 10 pages deep in the serps, that is fine too because if nobody clicks on it, I don’t pay for it.
Just so nobody is confused, I do not pay to advertise my hubs or blog posts or anything like that. I pay to get eyes on my own self hosted websites and on the products or services I promote on those sites.
Surely Google's cost-per-click ads have been in decline for some time? The deal is better for advertisers than it used to be, because Google have got increasingly desperate. Google Earnings: Profit Up but Search-Ad Prices Drop 6%
But I would agree that what I said was badly worded, in that although the search engine doesn't directly make money through the quality of its results, the more people they get using it, the more they earn through the associated advertising.
Paul, I would respectfully disagree. You see, the better the quality of the SERP's, the more likely a visitor will click on an ad. This is not the case with junk pages hidden deep in the SERP's. Like I pointed out earlier, Cost per Click earns Google revenue when a person clicks on an ad. When that happens, they get to charge the advertiser their bid price (or close to it) if nobody clicks on an ad then the advertiser is not charged and Google earns no money.
Google is up in market share as well as Bing. Both are making gains against the other so called top search engines (AOL, Yahoo, Ask) And as Greekgeek touched on, the mobile market is expanding at an alarming rate. Google intends to corner that market as well, which is why they are investing so heavily into it.
While I will agree that cost per click rates that advertisers pay have been coming down, the market has expanded so much that that revenue has easily increased.
Panda/Penguin does indeed sacrifice spammy, junky, low-quality sites that were fattening up on Adsense revenue without actually offering any content to visitors. So yes, Google was bound to lose some money there. As livewithrichward notes, however, there may be a net gain, since cleaning the junk out of search results means that more people are going to be landing on pages they'll stay and read, and the advertising may suit their needs better and attract more clicks.
Besides the fact that Google's profits are actually doing well, and that it's sinking a lot of its profits into investment right now -- there is another big factor which even Google can't entirely overcome: the mobile web.
You CANNOT serve as many advertisements to mobile users as desktop users. This is offset by the fact that mobile means more people are coming to the web every day, but still, that's going to cut into traditional advertising revenue streams.
But guess what? There are times when it's more possible to sustain crazy growth than other times. Ford could sell more cars when nobody had a car than when everyone had a car, but it didn't go bust once everyone had bought their first model A. So it's not necessarily a danger sign that Google's profits are less right now than they are some quarters. Growth is growth, whatever Wall Street thinks.
When my Papa taught me how to invest, he pointed out to me how Wall Street drops stocks like a rotten fruit when a company's earnings turn out to be slightly better than expected, just because it didn't match the forecasts. So take the daily news' broadcasts about the stock market with copious grains of salt and dig deeper.
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