Peter Kafka

Recent Posts by Peter Kafka

Amazon Loves Google! And So Does Every Advertiser.

Here’s one of the reasons Amazon does so well each holiday season: It spends a ton on online ads. Here’s Kantar Media’s estimate of Google’s top search advertisers for Q4 2010, which places Amazon in first place–note that the retailer’s spend is nearly double that of second-place AT&T.

One other thing worth noting in this chart: Google’s top advertisers don’t spend that much at all, relative to the company’s entire business.

By Kantar’s estimate, Google’s top 10 advertisers spent $243 million on paid search in the U.S. during the last three months of 2010. Google’s overall U.S. revenue for that period: $4 billion.

You’ll see the power that kind of widely distributed customer base can generate on Thursday, when Google reports its Q1 earnings. Wall Street expects big things, with good reason.

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I think the NSA has a job to do and we need the NSA. But as (physicist) Robert Oppenheimer said, “When you see something that is technically sweet, you go ahead and do it and argue about what to do about it only after you’ve had your technical success. That is the way it was with the atomic bomb.”

— Phil Zimmerman, PGP inventor and Silent Circle co-founder, in an interview with Om Malik