Markets slam Expedia over a reported Google penalty, but revenue impact may be tiny – Tnooz

Mike's Opinion:

Could this have been a shot across the bow in an epic war as Google moves towards transactions? In the context of positioning by Google, TripAdvisor, and Booking.com, Expedia's acquisition of Trivago and partnership with Travelocity make all the more sense. But ultimately will Expedia be able to compete with personalized offerings from Google that tap into consumer data that Expedia can never dream of accessing? Heck, will anyone?

-Mike

Article Excerpt:

Expedia Inc’s stock (EXPE) was pummelled earlier today by 4% in early US exchange trading.

The selloff was in response to a report that the flagship site, Expedia.com, may have lost as much as a quarter of its visibility in search results due to a Google penalty for unsavory link practices.

But the market may be over-reacting. Expedia Inc’s results may be hurt from the traffic loss by less than 1%, says one leading analyst.

Search Metrics is claiming — according to a report in Search Engine Land – that Google punished Expedia for allegedly participating in “paid linking schemes” to manipulate its ranking in Google organic search results for most of their generic keywords.

READ THE ORIGINAL ARTICLE: Markets slam Expedia over a reported Google penalty, but revenue impact may be tiny – Tnooz.

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