Devoted to online marketing, viral marketing, and web marketing

The Chief Financial Officer of Google George Reyes said that there could be a slowing of advertising revenue growth. Speaking at a Merrill Lynch investor conference in New York, Reyes said that Web search advertising, which accounts for 99% of Google sales, would no longer depend upon improving upon its ad business but upon entering into new markets and overall market growth.a

Reyes was quoted by CNBC financial television as saying “growth is slowing and now largely organic; the search monetization gains have now been largely realized."a

Eric Auchard writing for Reuters offers some insight into what that means when he says “Organic growth relies on factors such as overall Internet users or the number of Web search queries, instead of business efforts Google makes, such as modifying its pay-per-click ad system to place more ads on each page.”a

In response to the comments made by Reyes, Google shares dropped as much as 13 percent, which is more than $50, and finally recovered to being down $22 or about $368 on the Nasdaq.