Google has been modifying the features of Gmail, the tech titan's electronic mail service. Reports said the recent changes to Gmail failed to please retailers and marketers.
Three months ago, Google started using algorithms to direct a user's email into particular categories. Several ads and offers currently end up in a new folder called Promotions. People would click on the said folder to see the offers instead of just seeing them completely mixed with the other emails. Also, the Wall Street Journal said retailers were upset with the fact that only the ads sold by Google were the ones appearing in the open mails. Retailers were worried about the lessened chances that users would open the Promotions tab since it was totally separated with their regular mails.
According to MailChimp, the number of emails that were opened plunged by around 1%. Also, marketer Epsilon said the new Gmail structure have not made an impact on the user's response rates yet.
During this year's second quarter, Google's revenue was USD14.11 billion with a USD9.56 earnings per share. However, the company said the average cost per click was down by 6% year on year.
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