What Google is really doing

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1. Indexed pages are growing at 70% a year.

2. Internet ad revenue is growing at 20% a year and moderating.

3. As a result, Google's own ad revenue and earnings can't grow as fast as they did.

4. Therefore, Google is pushing more third party ads onto AdSense partner sites and putting more of their own client ads on Google.com. (The company has admitted it in its financial reports.) Google doesn't have to share the much more profitable Google.com revenue with partners. That way it can keep growing earnings faster than total Internet ad revenue -- for now.

5. Any of you with AdSense are seeing lower clicks and revenue because of lower quality ads coming from third parties through Google, a weak economy, fewer Google client ads and more competition for ads in general. Get used to it. The trend will continue.

6. Finally, Google is implementing much stricter rules about quality sites because there simply are too many of them. It will maintain good relations with a smaller and smaller number of high quality sites. High quality sites will keep rising in SERPs while lower quality will fall.

7. In the meantime, it will try to keep growing its business by diversifying into Google Drive, social media, mobile and other major initiatives.

The search and AdSense business model we all have bet on has matured. It's now changing for good.
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