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Google’s First Sign Of Economic Slowdown – Less Cafeteria Hours

In a very interesting article on entitled "Google Get’s Frugal" it talks about how the Internet Giant once was able to treat its employees with on-site massages, a concierge
service and three gourmet meals a day is now cutting back on the elaborate food budget. As a result of this, there are shorter hours for the company’s cafeterias, and no more
afternoon tea on Tuesdays. Click here to hear to listen to NPR host Liane Hansen speaks with technology
columnist Farhad Manjoo of Slate Magazine about what else Google’s

But what does this say about the Search Engine Giant?

In my opinion, not much right now, but it’s an ominous sign of possibly more changes to come if the Google Stock Price continues to decline during this economic slowdown. As you can see in the image, the stock has tumbled from $700+ per share to currently $311 as of this blog post. Does an almost $400 per share decline ultimately mean a 12oz Filet Mignon’s will be be replaced with a Swanson Hungry Man Dinner? Probably not. But the bigger story is not the proof in the pudding, but the ingredients that make up the pudding. Let me explain.

Google Finally Adjusting to The Market?

If you haven’t already noticed, Google has changed up their algorithm once again in the past few months, but this update is a little different from the others. Remember those annoying "Inactive – Bid $10.00 or increase quality" alerts, especially in those new Google accounts? Well, we are now seeing a little less Inflation and more of a "nicer tone" to increase your CPC bid. For example, now you get something like "Bid is below first page bid estimate of  $1.75" which sounds more like it.

No matter how you look at it, advertisers Search Budgets are taking a hit and Google knows this and is finally reacting to it. So form now on, if you want to know what is going on with Google, you have 4 very important Economic Indicators to look at during this 2008 4th quarter.

  1. The slowdown at Google 5-Star cafeteria.
  2. The Overall Stock Price
  3. The End of an Historical Political Season which has stopped spending.
  4. The Algorithmic changes within the Adwords Program

What are the Economic Indicators:

So, if you need a barometer or say a "turkey thermometer" to see what is going on with Google, just send an email or chat to one of Google’s Chefs, Pastry Chefs and Cafeteria workers to see what is going on.

If you would like more information on this topic I recommend an interesting read from the blog The Inside Angle – Is Google in Financial Trouble? by Andrey Zalusky

Filed under: Google Adwords

2 Responses to "Google’s First Sign Of Economic Slowdown – Less Cafeteria Hours"

  1. Andrey says:

    Nice article. If you get a chance, take a look at a post I made in October. It looks to me like they’ve been cutting costs and trying to increase revenues in reaction to a slowing economy for a while now.

  2. I hope Google will not cut down on the percentage of revenue sharing with web publishers.

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