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Technology Stocks : Google - No Soapbox
GOOG 1,341+0.9%Dec 6 4:00 PM EST

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To: Gabriel008 who wrote (4)1/27/2006 1:56:09 PM
From: Gabriel008  Read Replies (1) of 25
Andrew Goodman of Traffick;
It sounds like clicks convert better to revenues out of these top ("premium") spots, at least on popular mainstream terms, according to the Atlas Research studies.

So if commercial traffic is being better monetized AND it also converts better for advertisers, it would have been full steam ahead at a higher average revenue per page in Q4.

Countering that was an entirely different phenomenon, the introduction of a new Quality Scoring system to replace the old ad ranking formula. The result of this seems to be the removal of some lower priced clicks from the system (fewer ads showing on some queries). While this might have dampened revenues slightly, it seems inevitable that Google in Q4 will have significantly reversed the stagnating trend in average CPC's.

Overall revenues may be at or slightly below expectations, but profit margins should surpass expectations. Presumably, if you work for Yahoo, you don't manage a wide range of AdWords accounts. We do and I can't for the life of me see any reason to doubt that Google had a monster Q4. AdWords runs very efficiently compared to Y!SM.
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