IncrediMail revealed today that they had received a notification from Google indicating that they had been dismissed from the Google AdSense program. Upon the announcement of this news, IncrediMail shares plummeted more than 45% to a new year low. Ouch.
It’s not known how or if IncrediMail violated any of Google AdSense terms of use, and if that is the reason behind being kicked out of the AdSense program. IncrediMail only revealed that their AdSense account had been disabled, and that Google barred advertisements to search results pages displayed through IncrediMail’s account.
IncrediMail offers consumers special software that allows them to customize emails. According to their web site, the company generates revenue by selling software products and offering subscriptions to its content database, as well as by selling sponsored links, paid advertising, and keyword search capabilities on their website and e-mail client. IncrediMail indicated that search revenues powered by Google AdSense made significant contributions to its results in 2006 and 2007. In just the first nine months of 2007, the company’s revenue shot up 94% to $13.3 million.
As shares of the company fell to $2.50, a new year-low, before rebounding a bit and trading at $2.70, IncrediMail has been attempting to sort this mess out. Since findingout about being banned from AdSense, IncrediMail has been attempting to clarify the situation while looking for similiar service alternatives to fall back on if Google upholds the ban.
While its not yet clear why they were banned, or whether or not their account will be re-instated, there is one lesson that this should reinforce for all us: don’t be reliant any one single source of income for your web site or company because one day, it could all be gone.
