Thursday, November 1, 2012

Amazon threat to Google's search revenue?


http://www.cmswire.com/cms/customer-experience/googles-adwords-bringing-in-100-million-per-day-018070.php

 
Considering Google’s such diversified product line, it is worth to note that their only revenue stream is from advertisement. However, reportedly, they are generating about $100 million a day from search advertising alone. At least to me, the fact that Google makes more money from adverts then from search results surprised me at first, but when I thought about it for a while, it all makes sense. I believe that it is Amazon, who is eating up most of their search advertisements, and Google should be worried.

Amazon, being the most powerful e-commerce site that sells practically everything you want to buy online, is influencing customers to come directly to their site to search for a product, bypassing Google. Additionally, search is becoming much diversified. People are searching for products through QR code and images. Check out this app called Flow. It is from Amazon and allows you to search for products by simply aiming your phone camera to an object.

 

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