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My web server was down for about 30 min. The next day (30~ hours from the event) I noticed major drop in traffic from Google. The normal traffic to my site is about 2500 unique/day and after the event it dropped to 400/day. Other than this event nothing happened. Can this be the reason?

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up vote 2 down vote accepted

Leading up to the event search traffic may have been higher than it is now and not have to do with your server having problems. Just like traffic goes up during the holidays. I guess it would depend on the event if it was locally or nationally promoted. 30 minutes of downtime shouldn't affect your traffic.

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Google creates cache version of web pages, so even if its down it will still be ranked, but if its down for an extended amount of time a competitor can easily slip ahead (usually this happens when a competitor updates an existing web page that is listed in the search results).

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That depends on if Google tried to crawl it while it was down. If it did, it may have pushed it down or pulled it from its list thinking that it was a dead link.

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Google may not think it's dead, that all depends on the server http response code. –  Anagio Jun 22 '12 at 6:06
    
yes the server was down. not connected to the interent for about 30 mins. but it normal for websites to go down once in a year.. so that can be the actual reason you think? –  YardenST Jun 22 '12 at 22:31
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