The number of consumers who clicked on Google's Paid Search links declined in the month of March disappointing shareholders and negatively impacting Google's revenue.
Some analysts believe that the decrease in clicks across all search engine sites is due to the slowing economy and consumers' decreased interest in shopping for new products.
Google maintains that the deceleration in paid clicks reflects its efforts to improve the quality of its advertising leads, which is expected to drive up average prices. Google has also argued that its search-advertising revenue will be more immune to economic troubles because the company provides advertisers with a measurable return on investment.
While both explanations may have some merit, I believe that it's possible that as more and more companies across multiple sectors develop strong web presences and build robust websites, consumers will start bypassing search and gravitate directly to brands that they already know. The value of search is that you can find items or services that you otherwise had no idea how to find. However, as this information gap is eliminated and more companies do a better job of positioning themselves on the Internet, the value that search provides will slowly decrease. Maybe this is the start of a secular shift in the search industry.
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