What happens when the commodity your whole business is based on, declines in price.
From Webpronews.com Keyword ad prices take a nosedive.
The Fathom Online Keyword Price Index, the best indicator of earnings trends in the search ad industry, dropped 15% in May, almost entirely on a massive correction in inflated mortgage keyword prices.
Google might be able to increase the prices of those keywords if they offered advertisers other abilities with them. What if Google started selling keywords for the mobile?
What if sending a text to Google's SMS with a keyword took you to a specific site or gave you specific info? Stay tuned, this space is just starting.
Mortgage keywords lost almost the entire cost of a subway fare, dropping 30% to $4.52 from $6.49. It was a bad month across the board, with seven out of eight categories seeing drops.
What do these figures have in common? 125%, 105%, 101%, and 93% growth.
They are Google's revenue growth quarter over quarter. Granted it's impressive, but it's slowing.