Weekly Search Engine Genie Newsletter
Prepared By Search Engine Genie Team
Article Of the Week
Latest Google News
Latest update from our Blogs
Below are the latest blogs of PPC for the week
Forum Thread of the week
Google's sliding share price and market value:

Everyone in search engine industry is well aware of the falling share price of Google. Does that mean anything for SEO industry? I fear yes. Falling price of Google shares are an indication of reduced spending of People which is again compared to reduce spending in PPC. If people are spending less in PPC it also means people will be spending less in Organic SEO. More PPC means more SEO I feel many will agree with me on this. I have many clients who are spending 1000s of dollars in PPC same clients pay us 1000s in SEO too. They feel both are very much necessary for them in search engine marketing. But after recent recession lots of clients for whom we were doing PPC management stopped PPC advertising for their sites. Same clients also reduced their SEO spend by atleast 60% people who paid us 2500$ are now paying only 1000$ we lost revenue same like Google. This is caused by major economic slowdown in US. People are not willing to spend money in fear of recession coming.

Google has lost more than 60% of its peak market value. At one point Google’s share reached about 750$ but now its hovering around 300$. Comparatively that’s a huge downturn. Its not just Google even other search providers like yahoo and MSN also lost their share value. Search engine business depends on people’s spending power and that is the main reason Google has lost more than other computer and internet related companies. Even Amazon and ebay are way down. But is 300$ the right value for Google I fear not.  I value their incredible rate of innovation, increasing search monopoly, strong involvement in fast growing markets such as China and increasing moves into (online) television (e.g. Hallmark), which could be huge for them in years to come. They also have made significant inroads into the digitization of out of copyright books, which, after three years, is just starting to bear fruit and, Once Youtube gets some commercial content and they push its advertising its revenue should jump too.

More generally, apparently fewer than 25% of their web properties carry advertising, so it shouldn't take much effort to increase the cash flow if times are troublesome.

All of this, to me, is worth a premium over book value. Also, if the book value is around 300, the current market price, then, given that we're still in the early (pessimistic) days of a recession then I'd expect it to recover to 400+ once the panic subsides, as, from what I can tell, it was only ever global panic that forced it to drop anyway (given their minimal exposure).
So, on top of their stocks real (book value) appreciation, I expect another 30% of growth from returning optimism.

Google is here to stay and will be there for a long time. I expect them to recover very soon and I am sure it will bring boost to SEO industry as well.

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Latest Google News:

Google, Microsoft, Apple sued over preview icons:

A Michigan-based networking company on Wednesday filed a lawsuit against Google, Microsoft, and Apple, alleging that all three tech giants violated a patent it owns on the use of document-preview icons--or thumbnails--in operating systems.

patents

In the suit (PDF), Cygnus Systems targets Google's Chrome, Microsoft's Vista and Internet Explorer 8, and Apple's iPhone, Safari, and Mac OS X as patent infringers. Apple uses the patent-protected technology in its Finder and Cover Flow Mac OS X features, the lawsuit claims.

Cygnus describes the technology covered by the patent as "methods and systems for accessing one or more computer files via a graphical icon, wherein the graphical icon includes an image of a selected portion or portions of one or more computer files."

E-mails seeking comment from Google, Microsoft, Apple, and Cygnus' attorney were not immediately returned.

Cygnus was granted the patent in March 2008, according to the lawsuit, although it first applied for it back in 2001 as a continuation to a 1998 application, according to Ars Technica, which appeared to report the case first.

Cygnus is seeking damages and a permanent injunction to prevent further alleged infringement. It has also indicated that it might go after other companies as defendants.

Google Said to Replace Cash Gift with Android Phone (Update2) :

By Brian Womack and Melita Marie Garza

Dec. 23 (Bloomberg) -- Google Inc owner of the world’s most-used search engine, is giving employees mobile phones instead of cash gifts this year as it reins in costs during the recession, according to a person familiar with the matter.

About 85 percent of workers will get a handset powered by Google’s Android operating system as a holiday gift, said the person, who asked not to be identified. Google handed out $1,000 cash gifts to most employees last year.

Chief Executive Officer Eric Schmidt said last month that Google is seeking to control expenses and add fewer jobs as the global slump curbs online advertising growth. T-Mobile USA Inc. began marketing the G1 Android phone in October, offering many of the same features as Apple Inc.’s iPhone, including Web browsing. The holiday gift is separate from the performance bonus handed out by the company, the person said.

“The current economic crisis requires us to be more conservative about how we spend our money,” Mountain View, California-based Google said in an internal memo that was posted on technology industry blog Valleywag.

The memo lists 17 countries where the phone won’t work, including Brazil, Russia, India and China. Employees in those countries will receive about $400, the cash value of the phone, Google said in the memo.

Google rose 91 cents to $298.02 at 4 p.m. New York time in Nasdaq Stock market. The shares have lost 57 percent this year.

Ad Spending

Google, which offers employee benefits such as free gourmet lunches and massages, has clamped down on costs as the recession squeezes online ad revenue.An analyst at Barclays Capital in New York, lowered his forecast for U.S. Internet ad spending last week by 11 percent to $25.1 billion in 2009.

Google added 519 workers in the third quarter, compared with 2,130 in the same period a year earlier. Google said last month it would reduce the use of contract workers. At the end of the quarter, the company had more than 20,000 regular employees, up from almost 11,000 at the end of 2006.

Technology companies throughout Silicon Valley and beyond are grappling with a slowing economy, forcing them to cut workers and roll back other expenses. Printer and computer maker Hewlett-Packard Co. is freezing salaries to lower expenses, people with knowledge of that decision said. Technology services company Unisys Corp. said yesterday it was cutting about 4.5 percent of its workforce and halting some pay raises.

Half of chief information officers are looking to cut consulting-services costs, 35 percent want to reduce computer and server expenses, and 23 percent are seeking savings on software, according to a Goldman Sachs Group Inc. survey.

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Latest Update from SEO Blogs

What’s the best way to determine a web page value? :  This post tells about different way to determine the value of web page.

A role of SEO consulting specialist and how to find them : This post educates you about the role of SEO consulting specialist.

Cuil denies spamming our blogs with comment spam : This post informs you about not using attributes and links in your comment in any website.

Offensive Google AdSense Ads Showing Up On Publisher Sites : This post tells you about the offensive ads showed up on the publisher site.


Latest Blogs from PPC :

How do I show my ads on iPhones and similar mobile devices?: This post gives you some steps to follow on how to show your ads on iPhones and similar mobile devices.

An update to the AdWords alcohol policy: This post tells you about the AdWord’s alcohol policy.

MSN adCenter Wants Your Feedback: this post wants you to give feedback to MSN ad centre.

7 Biggest Mistakes of Web Analytics: this posts tells about the seven biggest mistake made by web analytics.

Forum Thread of the Week:

Google Search news

Google penalty observation - out of -950 into -50?

Comment 1: My whole site was in the -950 box for about 4 months, after deoptimizing internal anchor text it ranks again on position -50 for almost all queries.

I'm quite familiar with the -950 stuff and have been able to recover sites by deoptimizing internal anchor text but the -50 is still a mystery for me.
I think the most interesting part is, the site went from a -950 to a -50.

Comment 2: SEOPTI I had the exact same thing happen to me about a 2 years ago. I bet you had a couple searches you still held and the domain name search brought your site up as it should.

I to was 950'd and made a ton of changes but all I could get to was 50th 30th and in between. Early this year Matt made the comment they were releasing some filters and I was out and have been slowly building back to the pre 950 levels. I was filtered for almost a year and been out now for almost a year.

10-1 your site is under a filter not a ban but a filter. Don't do anything stupid but continue to tweak and make improvements to the nav, internal linking and user experience. Continue trying to get some good links from within your industry and in about 4-6 months hopeful they will do a release and you will get out from under it.

I bet it is a manual review that got it filtered and one that will get it released.

Do a search using the whole title of the front page on your site minus the domain name and see were your rank is, then add the domain name and see were your rank is.

Then try an interior page title same way and see were your at.
Let me now were you rank for both.

Comment 3: bwnbwn, thank you for this helpful information. It's very interesting to see you believe it's a filter, I also think it's some sort of filter where PR has been devalued.

This -50 filter hits sites with unique content, most of my sites have a really healthy supplemental ratio. So I can rule out it's about having unique content or not.

I think it's probably a protection system where a site which has been in the penalty box for a few months (-950) will not start ranking again immediately but will slowly climb its way to the top. But of course it's just speculation.

As always it's a pain ... you give them unique content and they hit your site with this kind of nonsense.

Comment 4:

align="center">A site which has been in the penalty box for a few months (-950) will not start ranking again immediately but will slowly climb its way to the top. But of course it's just speculation.

I can confirm that there is an automated "gradual recovery" treatment from Google. Some penalties just pop-out into full restoration, but others recover stepwise.

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