I've thought for a long while that the bom in online ads was bound to evaporate in a sudden "where's the beef" realization (without regard to Jason Calacanis' insane theories that volume somehow trumps revenue). Well - it looks like the sudden realization is setting in now:

The focus on Google's recent deterioration sharpened Tuesday as investors reacted to the latest evidence indicating fewer people in the United States are clicking on the Internet ads that generate most of the online search leader's profits.

The unsettling trend, captured in a closely followed report from Internet research firm comScore Inc., shoved Google shares to an 11-month low. The drop extended a slump that has lowered the Mountain View-based company's market value by 33 percent, or about $70 billion, during the first seven weeks of the year. The tech-laden Nasdaq composite index has declined by 12 percent during the same stretch.

To which I say: "well, duh". Most of us ignore ads, and the more strident amongst us have ad blockers. Why would anyone think that there was an unlimited market for ads most people would rather ignore?

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