Google Click-Through Rate Slows

March 27, 2008 3:25 p.m. EST

Mountain View, CA (AHN) - A debate is raging on Wall Street whether a slowdown in clicks on Google's search advertising is a worrisome trend or a sign the Internet giant is striving to make click-throughs count for advertisers. The questions sent Google's stock down $16 to $442.

Google's click-through rate rose only 3 percent in February and was flat in January. The numbers, released Wednesday by Internet measurement firm comScore, differs from the up to 40 percent growth Google was reporting late in 2007.

For its part, Google explains the slowdown actually signals a change in how it counts clicks. Google describes the new tactic as increasing the value to advertisers of each click. For instance, Google is making changes to ensure clicks are purposeful rather than accidental.

Google reports its first earnings for fiscal 2008 April 17.