Is Google suffering from the recession?

Google has suggested that its advertising model is likely to hold up better in recession that that of other media companies.

Yet data for this month from the Google ads on my website, Magforum.com, suggest a different story.

At this rate, November will be the worst month for revenue at Magforum since May 2006.

Of course, we’re not talking big money here, but every month this year has brought in $120-$160, until this one, which is heading for just $70.

A comparison with this time last year shows that traffic is up from 1,211 visits to 1,290, but the number of clickthroughs has fallen from 15 to 14.

And revenue is down a whopping 27% to just $2.83 a day – just 20.5 cents a click, from 27c a click.

It’s a double hit, with far less revenue per click combined with fewer clickthroughs.

If that 27% is repeated across small websites such as Magforum, what happens to Google’s revenue?

I haven’t a clue how the Googleplex does its sums – and it can no doubt shave off more of the revenue to help keep its figures up – but if fewer advertisers are competing to push up the cost of a click and fewer visitors are buying the adverts, that adds up to a double jeopardy for Google too.

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