Google Adwords
It’s Official – Google Is A Cannibal!
(No Ratings Yet)Filed under: Google Adwords by Dan @ 5:37 pm
Cannibalisation (as a business strategy!) has many success stories. Nestle cannibalised sales of their original Kit Kat chocolate bars when they launched Kit Kat Chunky. Gillette cannibalised an entire range of shaving products when they launched the Mach 3 brand. Starbucks, McDonalds, Burger King, Subway and many more all cannibalise their own franchises when they open a new outlet within 100 metres of an existing one.
So why are so many multinational corporations fine young cannibals? Surely 1 fast food restaurant or coffee house would be more cost effective than 2 every 100m. Why buy twice as much land in expensive urban areas? And why buy twice as much machinery and hire twice as many staff? Chief Executes haven’t gone mad. Under the umbrella of one company name, new brands/franchises eat into the revenues of old brands/franchises, knowing that overall – and ‘overall’ is the key word here – sales will increase.
For example, out of 100 loyal Kit Kat customers, 50 people prefer to eat a Kit Kat Chunky. By itself, Kit Kat Chunky sells 100 bars. Although 50 fewer old Kit Kats were sold, Nestle sold 150 chocolate bars overall – 50 more than if the original Kit Kat had been the only item on sale.
So how is Google feasting on the flesh of its own? You may have seen the Ask (formerly Ask Jeeves) adverts on television recently. Ask is a rival search engine to Google, so you may ask (no pun intended) two questions: (1) Why is Ask part of Google’s search network at all? (2) Why is Google spending millions promoting Ask on TV?
Again, the answer lies with the Kit Kat maths. Let’s say Google has a 65% market share for all online searches. After its expensive ad campaign, Ask steals 5% of this, but commands 10% of the market in total. This gives Google and Ask combined 75% of the market. By itself, Google would have only had 65%. Its official – Google is a cannibal!
Related posts:
- Yahoo Search Traffic falls 50%
May search stats revealed a shocking shift in the UK search habits. Yahoo, the long struggling giant of Paid Search Marketing and Pay Per Click, lost over 50% of their search share on the previous month. Yahoo, often regarded as the second place search engine, is now tied with Microsoft... - Don’t Neglect Bing
A major mistake being committed by many search engine optimisation professionals is the act of sidelining Bing, whilst putting all their efforts solely into optimising for Google. You may ask yourself if this is the right move – after all Google is the market leader, aren’t they? In short, although... - Googlecrunch – Fears of a slide in Profitability
A few announcements of the past month have lead to a huge drop in Google's share prices. Since the start of the year, over 30% has been knocked off the share prices. Does this point to the first stumble of a falling giant or a change in the movement in... - The new Live Search homepage.
Microsoft is not giving up on trying to catch Google in its domination of market share in online advertising. Made available in the US yesterday, the latest 'improvement' to Microsoft's search engine, Live Search, is its home page background image. The new background images change randomly and contain interactive 'hotspots'... - The Google Crunch
Talking about credit crunch has become very fashionable. Stock markets falls and rises, governments' intervention and pledges, more and more people in financial sector losing their jobs and liquidity crises are the main topic of the News and a grim reality of our lives. Just 12 month ago financial giants...
Learn more about Pay Per Click.
Link to us
If you want to link to this blog, copy and paste the following HTML code to your website.
This entry was posted on Thursday, November 29th, 2007 at 5:37 pm. You can follow any responses to this entry through the RSS feed.
Leave a Reply
Search Blogs
Highest Rated Blogs
(5.00 out of 5)Improve Your PPC Conversion Rate By 62.5%
(5.00 out of 5)Get Rich Quick with PPC and the Cadbury’s Gorilla
(5.00 out of 5)What’s YOUR Conversion Rate?
(5.00 out of 5)The Plot To Kill Yahoo
(5.00 out of 5)Tag Cloud
About Affiliate Marketing affiliate basics affiliate campaign Affiliate Marketing affiliate marketing campaign Affiliate Marketing Strategy affiliate network affiliate program effective web design email advertising email campaign Email Marketing email marketing campaign email newsletters Internet Marketing online advertising online marketing online PR Online Press Release (PR) Online Press Release (PR) online press releases Pay Per Click (PPC) pay per click advertising pay per click campaign PPC PPC ads PPC campaign PR press release press release distribution press releases press release writing Search Engine Optimisation (SEO) search marketing SEO SEO campaign SEO press release SEO press releases SEO Tips Web Design Web Design Tips web development web marketing website design writing press releases
Flash Player 9 or better.Recent Posts
Direct Or Network Affiliates
Advantages Of Affiliate Marketing
Bad Press Releases Have Big Impact
What Is Blue Hat SEO?
Blog Categories
Blog Archives
