I read a couple of interesting articles and blog posts recently that pointed out what could be described as Google’s Achilles heel. Apparently online ads click rates are on the decline – 8 % of all internet users account for more than 85 % of all ad clicks, it’s even more skewed than Pareto’s Law. This is a 50 % drop since the year before when 16 % of the internet users accounted for 80 % of all ad clicks.
And where does the majority of Google’s revenue come from? Ads! Have a look at this chart and you’ll see that any change in the ad market will most certainly have an effect on Google’s revenue base.