Pricelineceo says Facebook and Twitter are no help to his company

Summary: Priceline CEO Darren Harston, America's largest online travel company, told Bloomberg that Facebook and Twitter were no help to his company as an advertising platform. He spends 1.8 billion dollars a year on online advertising, about 90% of the advertising costs to Google

Darren Harston, Priceline CEO of America's largest online travel company, told Bloomberg that Facebook and Twitter were no help to his company as an advertising platform. He spends 1.8 billion dollars a year on online advertising, about 90% of the advertising costs to Google.

Such comments--powerful advertisers who openly claim that the investment has not been rewarded--have made Facebook and Twitter feel awkward. The advertising business of these two companies is huge and successful. Their marketing team is still trying to dispel the voices of doubt.

Now and then, there are some big advertisers attacking Facebook and Twitter, claiming that "these ads don't work!" "General Motors is so. So does Forrester, a marketing research firm.

This is nonsense for the in-house staff of the two companies. Almost all of the ads on Facebook and Twitter are directly linked to ROI, taking the form of "Direct Response ads" (hereinafter referred to as "DR"). In Dr Ads, advertisers continue to invest in the advertising budget as long as they can bring sales to advertisers.

So why does Priceline think it has no effect? What Bloomberg does not say is that consumers may rarely consult Facebook or Twitter for advice before making travel plans. Tourism is a focus on search activities, so when it comes to tourism, Google should be a connoisseur. So it doesn't seem to be much help to put travel ads on Facebook or Twitter. Here is Harston's quote:

"On Facebook and Twitter, we also spent a lot of advertising money. "But we didn't get anything there," Harston said in an interview with Bloomberg headquarters in New York yesterday. ”

"Google is very respectful of our advertisers. Harston said his company contributed 3% of its advertising revenue to Google. "They'll make the most of my advertising costs." ”

This interview actually gives us more information about Google. Google's business is less transparent, and it is often reluctant to elaborate on its various revenue streams. So one important message we get from this interview is that Priceline's online advertising budget is 1.8 billion dollars a year, roughly the equivalent of 3% of Google's total advertising revenue.

It is tempting to wonder how many companies with huge online advertising budgets have contributed significantly to Google's advertising revenues.

In the fourth quarter, Google's revenue reached 16.9 billion dollars, almost all from advertising.