Google profits directly related to Panda?

[Whitey]

Now that the dust has settled it's clear the spectacular growth of Priceline – revealed in its second quarter results - was propelled by a massive boost in online marketing. The US company, which owns Priceline.com, Booking.com and Agoda.com, spent US$246 million in online ads in just three months - 78% more than the same period last year. [traveltrends.biz...]
A picture seems to be firming on Panda being a ploy in the box of commercial initiatives, to strengthen the results in the late 1st quarter, and now 2nd quarter by shifting big business into Adwords.

More analysis from commentators will occur, but it's worth noting that the huge Priceline group with a big affiliate footprint that would have been under the pump from Panda wipeout, spent 78% more on Adwords - most probably as compensation from a flattening in other channels.

Have members seen any commentary in other verticals that indicate the shift away from organic focus for major players involved in affiliate distribution.

[tedster]

I don't see anything relating to Panda in that article, Whitey. All I see is that Priceline's decision to spend 78% more in online advertising resulted in spectacular growth - for Priceline.

The article isn't even talking about Google profits. And it sure isn't talking about organic SEO, which is the focus of this forum.

[whatson]

Companies are getting better conversions, and more value out of visitors, Google is providing more direct and accurate traffic through Adwords. More people are using web sites to book their travel. These are all contributing factors, to what is still a very big growing advertising medium.

[Whitey]

To me the article infers a rise in Adwords activity at a time when the affiliate network would have been under pressure for removal of aggregated content in SERP's which would be a sizeable proportion of it's distribution activity. Simply put Priceline timed it's spend increases around the same time. Was it planned by accident to coincide? Maybe, but i think it was partly reactionary in the case of this company and probably others.

From big brands, in other verticals I'm hearing similar stories. Investment in organic has been diverted to Adwords directly at the time of Panda. Again, I'm not seeing much written about it amongst stock and industry analysts though.

[tedster]

Here in the US, Priceline's advertising is extremely savvy. Their TV ads are the clearest, most memorable and most brand-building in the travel sector. I'm not surprised their online ads have also been successful.

The article doesn't even mention what kind of online ads they are running. Do you know for certain that their big jump in online spending was through Adwords?

[Whitey]

Do you know for certain that their big jump in online spending was through Adwords?

Re Priceline - absolutely no idea [ my apologies - 78% increase on Adwords spend is not an accurate assumption ] - but it was perfect timing to lift their online spend, even if not through Adwords; re others definitely "yes" - but I can only relate to a sample. Was this substantially replicated elsewhere ?

Let's put it another way, did Panda cause business' to look harder at other channels than organic in that period , and did some of that channel back through Google Adwords. And then did this substantially contribute to Google's bottom line?

[tedster]

Too much surmising and supposing for my taste, Whitey. But IF people did discover that a good Adwords campaign can result in a decent ROI boost, then that was a savvy business move. Or display ads. Or Youtube campaigns, or Facebook, or Twitter, or even print or broadcast efforts.

In my view, no one but a hobbyist should base their entire business model on Google organic traffic.