Americans go to buy products from Amazon before Google online (Business Insider)

Source: Americans go to buy products from Amazon before Google online: CHART – Business Insider

If you’re an American buying a product online, you’re probably going through Amazon.

Online marketplaces, a category that includes everything from eBay to Amazon, are the first stop for 38% of online shoppers in the US when they search for a product, according to a recent UPS survey charted for us by Statista. And Amazon itself is by far the most popular such destination, with 29% of the 5,000 shoppers surveyed heading to Amazon first.

That’s nearly twice as many as those who use search engines like Google, and equal to the total number of those who said they use specific retailers’ various channels.

The figure is yet another reminder of how much of a necessity Amazon, a  data-drivencompany, is becoming for companies who want their products to reach consumers.

That growing dependence creates a convenient all-in-one marketplace for consumers, but given Amazon’s ability to make and heavily promote its own versions of popular products, the ongoing shift toward online shopping, the ever-increasing number of Amazon Prime members, and Prime members’ tendency to only shop on Amazon, it’s also raised questions of how healthy the trend would be for consumers if it were to keep up in the coming years.

COTD_7.6

 Here’s How 5 Tech Giants Make Their Billions – Alphabet & Facebook: Advertising

Source: Chart: Here’s How 5 Tech Giants Make Their Billions

on May 12, 2017 at 1:03 pm

Chart: How 5 Tech Giants Make Their Billions

The Revenue Streams of the Five Largest Tech Companies

The Chart of the Week is a weekly Visual Capitalist feature on Fridays.

Last year, we published a chart showing that tech companies have displaced traditional blue chip companies like Exxon Mobil and Walmart as the most valuable companies in the world.

Here are the latest market valuations for those same five companies:

Rank Company Market Cap (Billions, as of May 11, 2017) Primary Revenue Driver
#1 Apple $804 Hardware
#2 Alphabet $651 Advertising
#3 Microsoft $536 Software
#4 Amazon $455 Online Retail
#5 Facebook $434 Advertising
TOTAL $2,880

Together, they are worth $2.9 trillion in market capitalization – and they combined in FY2016 for revenues of $555 billion with a $94 billion bottom line.

BRINGING HOME THE BACON?

Despite all being at the top of the stock market food chain, the companies are at very different stages.

In 2016, Apple experienced its first annual revenue decline since 2001, but the company brought home a profit equal to that of all other four companies combined.

On the other hand, Amazon is becoming a revenue machine with very little margin, while Facebook generates 5x more profit despite far smaller top line numbers.

Company 2016 Revenue (Billions) 2016 Net Income (Billions) Margin
Apple $216 $46 21%
Alphabet $90 $19 21%
Microsoft $85 $17 20%
Amazon $136 $2 2%
Facebook $28 $10 36%

HOW THEY MAKE THEIR BILLIONS

Each of these companies is pretty unique in how they generate revenue, though there is some overlap:

  • Facebook and Alphabet each make the vast majority of their revenues from advertising (97% and 88%, respectively)
  • Apple makes 63% of their revenue from the iPhone, and another 21% coming from the iPad and Mac lines
  • Amazon makes 90% from its “Product” and “Media” categories, and 9% from AWS
  • Microsoft is diverse: Office (28%), servers (22%), Xbox (11%), Windows (9%), ads (7%), Surface (5%), and other (18%)

Lastly, for fun, what if we added all these companies’ revenues together, and categorized them by source?

Category 2016 Revenue (Millions) % Total Description
Hardware $197,020 36% iPhone, iPad, Mac, Xbox, Surface
Online Retail $122,205 22% Amazon (Product and Media Categories)
Advertising $112,366 20% Google, Facebook, YouTube, Bing ads
Software $31,692 6% Office, Windows
Cloud/Server $31,396 6% AWS, Microsoft Server, Azure
Other $60,177 11% Consulting, other services (iTunes, Google Play), etc.
$554,856 100%

Note: this isn’t perfect. As an example, Amazon’s fast-growing advertising business gets lumped into their “Other” category.

Hardware, e-commerce, and and advertising make up 76% of all revenues.

Meanwhile, software isn’t the cash cow it used to be, but it does help serve as a means to an end for some companies. For example, Android doesn’t generate any revenue directly, but it does allow more users to buy apps in the Play Store and to search Google via their mobile devices. Likewise, Apple bundles in operating systems with each hardware purchase.

Top 10 – ‘Meaningful Brands’ – Belgique (Source: Havas – Infographie: Mediafin)

view

Meaningful Brands is a unique global study from Havas Group that links brand performance to our quality of life and wellbeing. This year, Meaningful Brands 2017 also reveals new data that tracks the relationship between a brand’s business performance, its meaningfulness and the content it produces.

The largest global study of its kind – spanning 33 countries, 300,000 people and 1500 brands – it is also the first study to analyse and measure content effectiveness at this scale.

Meaningful ?  Go beyond the product, exploring how brands tangibly improve peoples’ lives and the role they play in society !

More Meaningful News ? http://www.meaningful-brands.com/en/news

Trips l’offre de voyages de Airbnb – Airbnb Trips | L’ADN

Après les hôtels, Airbnb s’attaque aux voyagistes en lançant une offre de voyages inspirée par une expérience globale.

Source: Trips l’offre de voyages de Airbnb – Airbnb Trips | L’ADN

Les signaux étaient là. Airbnb se diversifiait petit à petit organisait des circuits et des expériences qui laissaient présager une phase de beta-test avant de lancer une offensive plus globale. Cette fois-ci c’est officiel, la marque a annoncé la sortie de Trips « une plateforme communautaire conçue pour rendre le voyage à la fois facile et magique. Trips est lancé aujourd’hui avec trois offres clés – Expériences, Lieux et Logements. Les Vols et les Services seront ajoutés à l’avenir » précise le communiqué. Autrement dit, Airbnb se diversifie pour devenir un voyagiste complet intégrant toute la chaîne de valeur du voyage, du choix de la destination au retour d’expérience en passant par le vol et le logement.

Airbnb Trips présentation

Une nouvelle entrée dans le voyage

La grande originalité de Trips réside dans son approche par thème. Oubliez les « simples » vacances que vous choisirez avant tout pour la destination, le dernier né d’Airbnb mise sur l’expérience comme clé d’entrée pour une meilleure invitation au voyage : boxer à Detroit, apprendre à fabriquer un violon à Paris, vivre l’esprit du marathon au Kenya, atelier Samuraï au Japon, initiation aux voitures anciennes à Malibu, chasse aux truffes en Toscane… En proposant de vivre un centre d’intérêt avec les locaux, Airbnb vise juste pour les voyagistes en quête de sens, d’authenticité et d’expériences.

Airbnb va faire mal aux voyagistes

Renforcer le maillage local

Pour proposer le meilleur de l’offre locale à ses clients, Airbnb compte bien sur sa communauté d’utilisateurs pour recommander des lieux mais également sur les locaux. Pour cela la marque a constitué des Guides d’Experts composés d’experts culturels et d’initiés de quartiers qui proposeront leurs adresses. C’est ainsi que le chef montant vous recommandera le tout dernier restaurant tendance quand le barman mixologue vous confiera son bar local préféré. Car Airbnb a un véritable lien affectif avec les locaux mais surtout économique. Comme l’expliquait un récent article de Bloomberg, Airbnb générerait 4,5 milliards de dollars pour les restaurants locaux car les utilisateurs du service privilégierait les commerces de proximité lors de leur voyage.

Airbnb va faire mal aux voyagistes

Le logement : fondation du système

Ce développement n’aurait pas été possible sans une base travaillée depuis 2008 : celle du logement. Grâce à cet élément la marque a conçu un système de confiance qui lui a notamment permis de créer une communauté, de couvrir le monde et d’être au plus proche des locaux. Ce travail a permis à Airbnb de pouvoir proposer aujourd’hui plus de 3 millions de logements dans 191 pays, soit l’offre « la plus large et la plus diversifiée d’hébergements uniques pour les voyageurs » comme l’explique le communiqué.

Airbnb va faire mal aux voyagistes

Cette annonce semble bien faire écho à la dernière levée de fonds de 555 millions de dollars par la marque la valorisant ainsi à 30 milliards de dollars.

Si l’offre devrait faire trembler les voyagistes, elle devrait également tuer dans l’œuf des jeunes startups qui proposaient des verticales similaires (Trip Flint, Routes, Tours by Local…) sans la force de frappe globale travaillée depuis 2008 par Airbnb.

Google’s Travel Business Is Already Twice the Size of Expedia’s – Skift

Source: Google’s Travel Business Is Already Twice the Size of Expedia’s – Skift

If publicly traded companies such as Google are bound by fiduciary duties to shareholders, then Google, which already has one of the largest travel businesses in the world, larger than the Priceline Group, TripAdvisor and Ctrip combined, would be foolhardy to shoot its advertising business in the foot to become an online travel agency.

— Dennis Schaal

When is Google finally going to tie all of its travel products together and become an online travel agency to rival Expedia, the Priceline Group and, increasingly, Ctrip?

Not anytime soon or even in the foreseeable future. We’ve been saying this for awhile — for years, actually — but now we can use some dollar estimates to back our theory and fine-tune it with comments on the subject that a Google executive made at the Skift Global Forum in Manhattan in September.

Why would Google want to become an online travel agency when its existing travel-advertising business — including all of those paid links that dominate its search-results pages — likely produces more revenue than the Priceline Group, TripAdvisor, and Ctrip combined? 

One investor group dissected publicly available information, made some educated guesses, and confidentially shared its rough estimates with Skift on the scope of Google’s existing travel-advertising business. Google would probably generate at least about$12.2 billion ≈ cost of 1972 Hurricane Agnes

“>[≈ cost of 2005 Hurricane Rita] in revenue from travel advertisers in 2016, with about $6.2 billion ≈ Suez Canal annual receipts

≈ San Francisco Bay Bridge span replacement, 2002-2013

“>[≈ K-12 annual book sales revenue, 2010] of that coming from just four travel advertisers, namely the Priceline Group, Expedia Inc., TripAdvisor and Airbnb. [See the end of this story for how the $12.2 billion ≈ cost of 1972 Hurricane Agnes”>[≈ cost of 2005 Hurricane Rita] estimate of Google’s estimated2016 travel-advertising revenue was arrived at.]

To get an idea of the scope of Google’s projected $12.2 billion ≈ cost of 1972 Hurricane Agnes”>[≈ cost of 2005 Hurricane Rita] in travel revenue for 2016, you can compare it with the actual 2015 revenue of the four leading, publicly traded online travel companies: The Priceline Group ($9.2 billion), Expedia ($6.7 billion), Ctrip ($1.6 billion) and TripAdvisor ($1.5 billion)

So Google’s existing revenue from travel advertisers is already considerably larger than that of the Priceline Group; is roughly twice the size of Expedia’s, and Google generates more travel-advertising revenue than that of Expedia, Ctrip, and TripAdvisor combined, according to this analysis.

And Google undoubtably takes that travel-advertising revenue and achieves a much higher profit margin on it than do the roster of its online travel, airline, hotel, car rental, and cruise partners, most of which are much more dependent on lower-margin transaction revenue.

So the next time people tell you that Google’s launch of a new travel app means the world’s largest search engine is finally getting into the travel business — you can laugh in their faces because Google’s travel business is bigger than online travel behemoth Priceline’s.

BUT WHAT ABOUT BECOMING AN ONLINE TRAVEL AGENCY?

If Google indeed became an online travel agency, it would further alienate its largest travel advertisers, namely the Priceline Group and Expedia, and up-and-coming ones such as Airbnb, and jeopardize a chunk of its travel revenue. TripAdvisor and Yelp are already very miffed at Google but they really have no choice but to use Google for advertising. Likewise, the largest travel companies would have to continue using Google for advertising for awhile because Google is the most important game in town but some companies, including Expedia, are fervently trying to diversify their spend into Facebook and other social media platforms.

The fear that Google could start to do travel transactions on its own is perennially on the minds of rivals because Google has most of the pieces –minus the customer support staff — to assemble a full-service online travel agency. Google’s travel portfolio already includes Google Flights; Google Hotel Ads; Book on Google for a handful of airlines and hotels; Google Maps; hotel and restaurant reviews and content acquired from Frommer’s and Zagat; the Android mobile operating system; a “Plan a trip” and travel guide feature on desktop and the mobile Web, as well as the new Google Trips app for itinerary management of flights and hotels plus tours and activities recommendations.

Speaking at the Skift Global Forum in September, Google’s Oliver Heckmann [video here and embedded below], who heads up its travel products, was candid about Google’s master plan, arguing that Google sees itself as an “answer engine” and “connector” to the right partner at the correct time, whether through free or paid links, rather than becoming a trip-planning site or booking engine.

In fact, Heckmann said, although Google wants consumers to begin their travel planning in the earliest stages through its search engine and associated products, it does not seek to become a trip-planning site.

“We don’t have plans right now to make this a travel-planning app,” Heckmann said, referring to Google Trips and acknowledging that doing bookings is a top request. “That’s a very different thing. We believe Google is the best place to start your travel planning.”

The Google Trips app seeks to be an “assistant” and “a good guide” and that’s why it includes information and recommendations about tours and activities, Heckmann said, adding that Google is not planning to sell flights on its own, although it is doing facilitated bookings for Lufthansa, Virgin America, WestJet and hotels as a way to optimize the mobile experience.

Google does not want to sell flights on its own or become an online travel agency, Heckmann said.

As we’ve pointed out above, Google’s becoming an online travel agency in its own right would jeopardize the largest travel advertising business in the world — and one of the largest travel businesses in its own right.

BOOK ON GOOGLE IS MISUNDERSTOOD

Heckmann said that Book on Google should probably have been named something else because it is widely misunderstood.

With Book on Google, the airline or hotel is the merchant of record, although the booking is processed on Google. Google shares data with the partner, which handles the customer service.

Heckmann said one of the reasons Google launched Book on Google, which it uses in verticals beyond travel, as well, is because of the widely varying quality of partners’ mobile sites, and the desire to optimize the mobile experience. For example, Google recently found that the duration of user sessions on mobile are decreasing as consumers are increasingly bombarded or distracted by so much digital noise, and this hurt conversion.

It’s not, he said, because Google wants to become a booker in its own right.

All of this doesn’t preclude Google from one day — if circumstances change — becoming an online travel agency. It just isn’t in the cards now or in the next few years.

As one investor told Skift: “The Google app won’t add booking. They want to keep the robust auction between Priceline and Expedia. Google already makes a killing in travel [maybe more than $6 billion ≈ K-12 annual book sales revenue, 2010

≈ San Francisco Bay Bridge span replacement, 2002-2013

“>[≈ Suez Canal annual receipts] from just Priceline and Expedia] so why screw that up?”

See the following video of Heckmann’s talk at the Skift Global Forum in September 2016 and below that how the estimate of Google’s travel revenue was calculated.

 A Rough Estimate of Google’s 2016 Travel-Advertising Revenue

  • The Priceline Group and Expedia Inc., including their wide array of brands, spent around $4.9 billion ≈ Construction cost for Nimitz-class aircraft carrier”>[≈ Higher education annual book sales revenue, 2010] for total online advertising in 2015 and are on pace in 2016 to bring that total to around$6.8 billion [≈ San Francisco Bay Bridge span replacement, 2002-2013]. If roughly 90 percent of the total goes to Google, then Google would attract some $6.1 billion ≈ K-12 annual book sales revenue, 2010
    ≈ San Francisco Bay Bridge span replacement, 2002-2013

    “>[≈ Suez Canal annual receipts] in revenue from just these two companies.

  • TripAdvisor would conceivably spend around $500 million [≈ net worth of Jay-Z, rapper, 2011] on Google in 2016; TripAdvisor’s total online spend in 2015 was $507 million [≈ net worth of Jay-Z, rapper, 2011]. Airbnb’s spend on Google, based on public rumors and educated guesses, might total some $300 million in 2016.
  • That means Google would take in $6.2 billion ≈ Suez Canal annual receipts
    ≈ San Francisco Bay Bridge span replacement, 2002-2013

    “>[≈ K-12 annual book sales revenue, 2010] in 2016 from just these four advertisers — Priceline, Expedia, TripAdvisor and Airbnb.

  • Roughly around half of Google’s travel advertising is considered to come from suppliers, namely airlines, hotels, car rental companies, cruise line and destination marketers.
  • Adding the spend of its largest online travel agency partners plus suppliers, Google’s travel advertising business, which is said to be its largest vertical, could then easily be around $12.2 billion ≈ cost of 1972 Hurricane Agnes”>[≈ cost of 2005 Hurricane Rita] or more.