That seems to be the suggestion in a report on Google (NSDQ: GOOG) by Citi analyst Mark Mahaney. Mahaney says he hosted a call with executives at four search-engine marketing firms — Clickable, Covario, Reprise Media and SearchIgnite — and all four said they expect next quarter to show improvement over the first quarter, which they say was dismal. One firm said search ad spending dropped a whopping 20 percent to 30 percent in January and February. (Google CEO Eric Schmidt said earlier this month that he expects 2009 to be a “tough, tough” year for his company.)
Already, though, the search-marketing executives say they have noticed a “snap back” in March spending — and expect the business to improve next quarter. Mahaney anticipates a seven-percent first-quarter drop in Google’s revenue, but a two-percent increase in the second quarter. Google reports its first-quarter results on April 16.
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