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Is there any public data on how much of TripAdvisor's revenue comes from Google organic traffic or paid search traffic from AdWords? I'm guessing a considerable
by shostack 9y ago
Is there any public data on how much of TripAdvisor's revenue comes from Google organic traffic or paid search traffic from AdWords? I'm guessing a considerable amount, but I try not to make assumptions about these things, particularly for large brands that likely get a significant amount of referral and direct traffic at this point in their maturity.
- user5994461 9y agoAbout zero revenues I'd say. Travel companies pay Google for the ads. It's not unusual that the referral costs as much as the margin earned from the customer. Thus the sale can have a zero or even negative value for the travel company, it will only make money from that customer if he comes back later. Your assumption was misplaced. The good question should be how much money does Google make from TripAdvisor? The answer is that they will lose a lot if they stop referring them.
- shostack 9y agoIf they are expecting to make a loss on the initial transaction, but make it up from LTV, I would be absolutely shocked as a marketer if they were not baking that into the equation when determining whether a given channel was profitable for them.
- user5994461 9y agoOf course they do check for profitability. There are quite a few interesting stories about that actually. For instance, if a channel consumes the vast majority of the margin, that's still a valid channel. The advertiser could depend more on you than you depend on him.