Google announced revenue growth that was its lowest since 2009, according to Ben Schachter at Macquarie Research. Critically, Google's paid click growth increased only 17% year-over-year while in the past it has increased 30% every quarter. Analysts expected 22% year-over-year growth. The cost per click was also down.
Incursions by Facebook and standalone apps into Google's core business--how people get information--may be responsible for the slow down. People using shopping apps and news-curation apps like Flipboard cut Google out of the info gathering process. Facebook is increasingly a source of information supplied by people's networks of friends. Even when that information originates from a Google search, when it's shared on Facebook Google is out of the picture. Google's other businesses--and there are many--are generally unaffected by the search dip.
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