Amazon A Big Threat To Google! No We Are Not Joking | TechTree.com

Amazon A Big Threat To Google! No We Are Not Joking

Google fears that Amazon may drain it's ad click revenue

 

It is a normal sight that a No. 1 always considers the companies next to it as its major rivals. Going by this theory Google should be considering the Bing or Yahoo as it competitors, but no. According to the search giant its Amazon.

Surprised? No not at all when these are revealed by the former CEO and now the chairman of the board of directors, Eric Schmidt.

"Many people think our main competition is Bing or Yahoo," he said recently. "But, really, our biggest search competitor is Amazon. People don't think of Amazon as search, but if you are looking for something to buy, you are more often than not looking for it on Amazon."

Why Is Amazon A Threat To Google?

The numbers don’t really match because Google’s 233.1 million unique visitors are far more than 172 million, who visit Amazon.

For its emergence as the leading search engine, Google makes its money through commercial searches. These searches are those that people search before buying a products and in turn is converted into ad clicks, which will earn money for Google.

This where Amazon is replacing Google. Being one of the most popular ecommerce sites, people are using the Amazon app to search products. Over the couple of years there has been a tremendous rise in the people using the Amazon search and the advent of smartphone and app's has tilted the advantage in Amazon's favour.

In 2011 there was a 73% increase in the usage of the Amazon search queries and this has been a major headache for Google.

As a matter of fact Schmidt himself shed light on this when he said that people were looking for different kinds of answers on Amazon’s site. This is mainly due to the enormous amount of reviews and product pages that are available on the website.

What he did not mention is that Google has been spending some sleepless night over the fact that this trend may result in financial losses to the tech giant. So actually it not the worry about losing traffic to a rival, but losing revenue generating traffic. 


TAGS: Google, Amazon

 
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