The world’s top online retailer, Amazon.com, Inc. (NASDAQ:AMZN), has topped the list of 25 highest spending companies on Google Inc (NASDAQ:GOOG) Search advertisement. The company spent a whopping $158 million, almost doubling the amount spent by Priceline Group Inc (NASDAQ:PCLN), the second-ranked company on the list.
All the 25 top companies spent a total of $1.3 billion, underlining how substantial the amount spent by Amazon.com, Inc. is.
Amazon.com, Inc. (NASDAQ:AMZN) is a known heavy spender when it comes to advertisements. And interestingly, the company also raked in $750 million ad revenues globally in the past year and is expected to hit the $1 billion mark in 2014. It’s reasonable for Amazon.com, Inc. (NASDAQ:AMZN) to spend huge sums on ads. As a retailer, search engines play a huge role in how many potential customers find their way to the company’s website, which leads to higher conversion rates.
Priceline Group Inc (NASDAQ:PCLN) has also been spending heavily on advertisements to win more users. Being a service oriented entity, Priceline Group Inc (NASDAQ:PCLN) depends on search engines such as Google, Yahoo!, and more to have customers purchasing from its website. Both Amazon.com, Inc. (NASDAQ:AMZN) and Priceline Group Inc (NASDAQ:PCLN) have been performing well in the market, justifying their high expenditure on ads.
The figures only reflects what Google Inc (NASDAQ:GOOG) generated from desktop advertisements, leaving out other revenues from mobile ads and Google Inc (NASDAQ:GOOG) product listing ads (PLAs).
Direct response advertising is expected to rise to 59.1% of the total U.S. digital ad spending; this is according to AdGooRoo, a Kantar Media company, and Ad Age Datacenter. The companies revealed that in 2013, the percentage stood at 58.4%.
Google Inc (NASDAQ:GOOG) owns the largest search engine in the world, explaining why many companies choose to spend heavily on its advertisement packages.
This article has been written by Victor Ochieng.
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