I can't provide a detailed opinion of this case because I can't recreate what the Guardian screenshot shows, but the end result in this particular case is Southwest airline's cost of traffic is vastly inflated.
When this particular user searches "Southwest Airlines", the giant image pushes all of the other results below the fold. The likelihood of the user clicking on an organic listing is very small to zero.
While most major US corporations have been purchasing PPC ads for their own trademarks for many years, and sitelinks have existed in Adwords ads for a few ads allowing more navigation options, this particular screenshot shows much deeper results. What I see in that screenshot matches the organic listings for Southwest Airlines right now on Google, "Check in Online" etc. The "sponsored" label within this element makes me assume that Southwest is paying any of those clicks.
The marketing departments of these large corporations, being dependent on their own internal results to justify further budget increases and bonuses are easily pulled in to this traffic attribution trap. They will be able to say, bookings from Adwords PPC traffic increased X times, when these were bookings that they previously were getting for free.
Figure out may be its not a great idea in two years? Too late. Google will just show something else in your place. (Google's ITA software prohibition expires in 2016, which will effect a lot of travel sites and airlines but that is a different topic.)
Is Google within their rights to do this, in the US? More or less yes. However, these corporations are baking in billions of dollars in extra costs to themselves. If I buy a Facebook ad or a Superbowl ad I get new visibility. Should I have to pay Rand Mcnally for users who walk through the door of my Starbuck's franchise because they used the map to find my location? It doesn't sound so ludicrous if I used a smart phone app to find a local coffee shop.
There is another side to this, the user's side. How happy are users once they know that most of what they are clicking on with Google are paid advertisements? For most of Google's life ads were just supplemental, a little additional content that made the company boatloads of money. No, for certain terms all Google is is ads. Its wildly more profitable. When users have been trained for years to believe Google is offering them objectively ranked content it becomes even better because their brains believe that ad they just clicked on is actually an objectively chosen "best" answer. Is this sustainable in the long run?
I'm not 30 yet and I feel like an old fart. I don't like the NSA reading my email. I don't like Facebook logins following me around the web. I don't appreciate perpetual history of every thing I do. I never even created a LinkedIn account. I don't like the idea of my Google experience being a boatload of paid ads. And I have my own company with well over a million monthly US users..
When this particular user searches "Southwest Airlines", the giant image pushes all of the other results below the fold. The likelihood of the user clicking on an organic listing is very small to zero.
While most major US corporations have been purchasing PPC ads for their own trademarks for many years, and sitelinks have existed in Adwords ads for a few ads allowing more navigation options, this particular screenshot shows much deeper results. What I see in that screenshot matches the organic listings for Southwest Airlines right now on Google, "Check in Online" etc. The "sponsored" label within this element makes me assume that Southwest is paying any of those clicks.
The marketing departments of these large corporations, being dependent on their own internal results to justify further budget increases and bonuses are easily pulled in to this traffic attribution trap. They will be able to say, bookings from Adwords PPC traffic increased X times, when these were bookings that they previously were getting for free.
Figure out may be its not a great idea in two years? Too late. Google will just show something else in your place. (Google's ITA software prohibition expires in 2016, which will effect a lot of travel sites and airlines but that is a different topic.)
Is Google within their rights to do this, in the US? More or less yes. However, these corporations are baking in billions of dollars in extra costs to themselves. If I buy a Facebook ad or a Superbowl ad I get new visibility. Should I have to pay Rand Mcnally for users who walk through the door of my Starbuck's franchise because they used the map to find my location? It doesn't sound so ludicrous if I used a smart phone app to find a local coffee shop.
There is another side to this, the user's side. How happy are users once they know that most of what they are clicking on with Google are paid advertisements? For most of Google's life ads were just supplemental, a little additional content that made the company boatloads of money. No, for certain terms all Google is is ads. Its wildly more profitable. When users have been trained for years to believe Google is offering them objectively ranked content it becomes even better because their brains believe that ad they just clicked on is actually an objectively chosen "best" answer. Is this sustainable in the long run?
I'm not 30 yet and I feel like an old fart. I don't like the NSA reading my email. I don't like Facebook logins following me around the web. I don't appreciate perpetual history of every thing I do. I never even created a LinkedIn account. I don't like the idea of my Google experience being a boatload of paid ads. And I have my own company with well over a million monthly US users..
I hope DuckDuckGo does really well.