Dear Google Ads - You're Fired!

Find an excerpt of an email that I was alarmed to receive today from my friends at Google.

Hello,

After reviewing our records, we've determined that your AdSense account
poses a risk of generating invalid activity. Because we have a
responsibility to protect our AdWords advertisers from inflated costs due
to invalid activity, we've found it necessary to disable your AdSense
account. Your outstanding balance and Google's share of the revenue will
both be fully refunded back to the affected advertisers.

Please understand that we need to take such steps to maintain the
effectiveness of Google's advertising system, particularly the
advertiser-publisher relationship. We understand the inconvenience that
this may cause you, and we thank you in advance for your understanding and
cooperation.
Google. I don't understand why this has happened. After my site has attracted 3000 hits and many clicks I also find it hard to believe that you are returning that funding back to your advertisers.

So you now get my exclusive eye under the microscope. 

Google shares last traded at $467 which is at Sep 2009 levels. On closer inspection the main source of income from operations appears only in one line - which is advertising revenue. It's easy to believe how this is the case where cases like mine above are in operation. It's virtually impossible for a customer to prove and in situations like mine - the cost of advertising is free.





Chart forGoogle Inc. (GOOG)

The key risk for this share - is the increasing political and privacy threat that it provides. Already this year it has breached Chinese and Australian Law. The question of what is ethical should be a reflection and a true test of true value in these cases.

Does Google conduct itself with ethics? I'm not so sure now. I used to think so when my clicks were recording revenue. 

Despite the analyst buy recommendation on Wall Street - I am steering clear of Google in an age old Warren Buffett adage- I refuse to invest in what I don't understand. Google. I noticed that you have a value of almost 4bn in goodwill registered on your balance sheet. It ain't goodwill if your brand value is negative.

I've taken down Adsense from my account now - and definitely open for business for anyone looking to advertise! 

What's up Jono? www.whatsupjono.com Breaking News, Finance, Stocks, Charts, Opinion





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