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Priceline's (PCLN -1.1%) online ad spend has more than tripled over the last 3 years to $1.27B...

Priceline's (PCLN -1.1%) online ad spend has more than tripled over the last 3 years to $1.27B (25% of revenue), as the company fights harder than ever with Expedia (EXPE -0.3%) for hotel bookings. RBC's Mark Mahaney (he of Facebook fame) thinks $1.14B of that total went to Google (GOOG), single-handedly accounting for 2.6% of the search giant's ad sales. Priceline's online ad spend rose 41% Y/Y in Q4, but there was a payoff. Expedia, which doesn't break out online ad spend, has seen its total ad budget rise 40% in the last 3 years to $870M (22% of revenue).
Comments (2)
  • I wonder how much went to TripAdvisor if at all....
    12 Mar 2013, 02:43 PM Reply Like
  • Google has built a two sided optimization process. Customer search-satisfaction and seller (ad buyer) satisfaction both improve by quantitative feedback. Better ads, more info/less spam make users happy. Better customers using improvements in Google Search make ad-buyers like Priceline more effective. Now that Google has opened Google Ads to Bing, Safari, Firefox and others, companies designing campaigns can be influenced by customer location, and buying mood on all search engines.

     

    Will Google expect reciprocity from Apple and Microsoft? You bet!
    13 Mar 2013, 10:15 AM Reply Like
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