Traffic Is Not Revenue

But the global recession poses a risk as well. Consider the fact that Google gets its income from selling keywords at auction. For these revenues to grow, the number of clicks on ads tied to keywords must increase and the price of keywords rise. Neither of these can be inferred from an increase in the number of visitors.

The value of keywords depends on several factors. First, of course, competition among advertisers is important: The more advertisers desire a particular word, the more that word's price increases. But the value also depends on an advertiser's skills (poorly chosen words do not generate clicks), on his or her strategies (those who use web advertising to build or protect their brand are more interested in ...

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