The Danger Of Relying On AdSense

Incredimail, an Israel-based “fun email” company that is publicly traded on the NASDAQ, has a business model consisting entirely of revenue from Google AdSense. The company discovered the danger of that single stream earlier this month when their AdSense account was disabled, but the rest of the world got to see that common problem unfold in a unique way: They stock tanked.
Incredimail’s stock, traded as MAIL, fell 30% in a single day on news that the company had lost its means of making money. In the interim, the company probably could have found another partner, like using Yahoo’s Publisher Network as a backup, but instead they watched as the market lost confidence in their company. It took 11 days to reach an agreement with Google to resolve matters, and since then the stock is up, but still off 21.92% from its price three weeks ago.
There is a […]

See original post by Nathan Weinberg