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Google Inc’s (NQ: GOOG) stock has seen tremendous gains in the second half of 2013. It has also enjoyed a string of upgrades, notably by Bernstein. However, there is cause for concern.
Google has quietly made a significant change to its advertising platform, Adwords. While in the previous version of Adwords users were able to filter out mobile or tablet traffic easily, in the current version, this cannot be done. There is an awkward way to reduce mobile traffic by reducing a percentage figure and there is no way to remove tablet traffic at all.
This looks like a purposeful attempt by Google to maximize revenue by not letting its advertisers (a lot of whom are small businesses) filter out mobile traffic, which converts much worse than desktop traffic for many campaigns.
Due to this, it is likely that Google’s advertisers will significantly reduce their advertising spending with Google until Google allows advertisers to properly filter out traffic types.