Facebook poses little threat to Google in travel advertising

Facebook poses little threat to Google in travel advertising
By
15 February 2017 (Edited 16 February 2017)



Investor's Business Daily has reported RBC Capital's take on the travel business, based in art on discussions with Skift researchers.

Key points:

  • Google parent Alphabet is unlikely to compete head-to-head with Expedia or Priceline.
  • Google accounted for about 90% of digital travel advertising in 2016, resulting in revenues of $12B.
  • Priceline, Expedia and TripAdvisor were the biggest buyers of ad space on Google.
  • RBC Capital doesn't believe Google will ever become an OTA.
  • Google will continue to dominate online travel advertising despite inroads by Facebook, because Facebook is unable to capture travel intent as Google can.
  • Google has owned Frommer's since 2012.
  • Amazon shuttered its Amazon Destinations travel business in 2015.


Takeaway: Google is smart to stick to its knitting, go on raking in ad dollars, and let others fight it out in the OTA space.




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External Article: http://www.investors.com/news/technology/google-reigns-over-facebook-in-digital-travel-ads/


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