Why Google's Not Clicking

There's little doubt in the tech world that Google has a huge advantage when it comes to search advertising .. it's been a gold mine for the company and its shareholders, and it seems that everyone else is struggling to catch up.

But the latest news is not encouraging for Google, and it only serves to prove what people have been guessing for months: Web surfers just aren't clicking on Google's ads like they once were.

Slow growth in the click area is bad news for Google, because that means advertisers aren't going to be pleased, and Google will become less valuable. Given that Google's share price -while still impressive- is now 300 points off its high, Wall Street has taken notice, too.

So .. is the Google model not what we thought it was? Not necessarily. Keep in mind that Google went public during a time of economic prosperity, and ad revenues were flowing well. The company does seem to have a better way of targeting customers, but when recession hits, it hits everywhere, and advertisers are traditionall among the first to pull back.

That hits radio, TV, newspaper .. and Google.