Blog homeExpedia (UK and Italy) have added Google Adwords to their site:
Thats an interesting move. Lets look at why they may have done this:
From Expedia’s perspective
- Enables them to bid higher within their own PPC campaigns - as they are doing a form of “arbitrage” (i.e. a certain proportion of their incoming traffic will be monetised on the way out - hence giving them more capacity to bid high for PPC)
- Continues to ensure that Expedia are where people start their travel research. After all, if users can get to related (and relevant) sites from Expedia - you may as well start your travel research at Expedia.
- Lets Expedia understand if they are actually presenting the correct product on their site - if users are tempted by other products (found within the advertising) then obviously not!
- May be a better way of selling RON advertising than any other alternatives supplied by DoubleClick (also on the Expedia site - and also owned by Google)
From Google’s perspective
- Should increase Adsense advertising inventory - hence help keep down keyword bid inflation for all travel advertisers
- Gives them great insight into the traffic patterns of a leading OTA.
The million dollar question is whether this is a first step in Google buying Expedia. If you search the web (using Google!) you will find plenty of rumours about Google acquiring Expedia. Google would want to understand exactly what Expedia could give them before they bid for the company…. and what better way than check out Expedia’s advertising statistics…..
Further news about Expedia carrying Google advertising from Travolution
If you want to be notified next time something is published sign up for email alerts or subscribe to the RSS feed. Thank you for reading!
Hi Alex,
I would say that your first point “Enables them to bid higher within their own PPC campaigns” would only be true if adding Google Adsense increases the earnings per visitor. If the Adsense ads cannibalise sales that Expedia normally makes 5-10% on, then earnings could definitely go down.
Interesting if this is a precursor to Google buying Expedia, though…