Google Warns that Reducing "Accidental Clicks" Could Hurt Revenue

Feb.19.08 | About: Alphabet Inc. (GOOG)

Google (NASDAQ:GOOG) warned in its latest 10-K filing that its future revenues could be hurt by its efforts to reduce “accidental clicks” on Web advertising. An excerpt:

…we may continue to take steps to improve the relevance of the ads displayed on our web sites and our Google Network members’ web sites. These steps include removing ads that generate low click-through rates or that send users to irrelevant or otherwise low quality sites and terminating Google Network members whose web sites do not meet our quality requirements. In addition, we may continue to take steps to reduce the number of accidental clicks. These steps could negatively affect our near-term advertising revenues. Both seasonal fluctuations in internet usage and traditional retail seasonality have affected, and are likely to continue to affect, our business.

Silicon Alley Insider asserts that the language about accidental clicks is new to Google’s filings.

In the 10-K, Google says it has made “a change to the clickable area around our AdSense for content text-based ads to only the title and URL to reduce the number of accidental clicks.”

Google Tuesday is down $18.44, or 3.5%, at $511.20.