Efforts to Reduce Accidental Clicks Could Hurt Google’s Revenue

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Here’s a prime case of you just can’t please everyone. Upon announcing that Google’s near-term advertising revenues might experience some negative effects from efforts to reduce accidental clicks, shares of Google dipped slightly on Tuesday.

A SEC filing on Friday revealed that Google was taking steps to improve the relevency of ads on its sites by removing those that generated low click-through rates, and those that directed users to low quality and irrelevent sites. This is the same language they use in most of their filings, and nothing really new.  However, what did catch the attention of investors was a new line in which they mentioned that they were attempting to reduce the number of accidental clicks on its websites and that “these steps could negatively affect our near-term advertising.”

Google has changed the clickable area around the text-based ads to include just the title and URL.  This, in turn, is supposed to reduce the number of accidental clicks and increase advertiser return on investment.

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