I found an article on Barrons’ blog that I thought might interest you. In announcing and discussing a stock analyst’s (BGC’s Colin Gillis) share price target increase for Google, the article discusses how Google may be generating more revenue from pay per click advertising.
Some interesting points from the Barrons article that domain investors will care about:
- “Google has been able to increase prices per click all year“
- “the company knows how to “capture the economics associated with improving conversions.'”
- “Gillis expects 12% growth in click pricing in Q3, the same as Q2, and thinks it will continue above 10% this quarter.“
I wonder how much (or if) Frank Schilling’s popular new parking service utilizing a Google feed, InternetTraffic.com, has played into this increase. Whether it has or has not, I have heard that clients are continuing to see higher revenue numbers.
I am not surprised that a competitor is about to emerge, which will ultimately drive even more domain traffic to Google.