The decline of PPC?

The New York Times’ technology section has an article headlined “A Highflier Loses Altitude as Google’s Clicks Go Flat”. While it may be premature for any of Google’s competitors to go euphoric over the sharp decline in share price (38 percent since they peaked at $747.24 in early November), a principal reason for that is the fact that “clicks on Google ads the United States were flat in January when compared with a year earlier”. That steep drop in PPCs (pay per click) is most likely due to an overall decline in economic activity rather than a moving away from that as a marketing medium. Comscore, the research firm that reported on the decline did not stay if there was a proportionate increase or movement towards “organic” search involving search engine optimization (SEO) that is accomplished by optimizing a company’s web pages to get a higher ranking on search engines for a firm’s search terms.

Most hotel websites use organic search but many have turned to PPC using Google Adwords as they produce fairly reliable metrics such as the CTR (click through rate). Google’s declining clicks may well indicate a potential softening in the hospitality market as well.

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Vijay Dandapani

Co-founder and president of a New York based hotel company for 24 years. Grew the firm to five hotels in Manhattan and also developed a greenfield project at MacArthur airport, New York. Speaker at numerous prestigious forums including Economy Hotels World Asia, Lodging Conference, NYU, Columbia University Real Estate Roundtable, Baruch College's Zicklin School and ALIS. President and ceo of New York City Hotel Association since January 2017.