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Re:Amazon Fire Phone by opendais on Wednesday June 18, 2014 @06:14PM (#7913242)
> When you say 5x, are you considering the acquisition cost for each product sold, or the annual budget?

When I say 5x, I mean Google gets 5x the amount of money than Amazon does. I think that is more relevant than a "per item" basis.

> Unless you only sell through Amazon, then a global comparison wouldn't be fair, because Google is semi-monopolist in ads while Amazon is far from it in retail.

It isn't my fault Amazon can't sell more of our products. ;)

> You should compare your average user acquisition cost with the wholesale margin left to Amazon; eg: how much does it cost to acquire through ads a user that buys products for $100? And how much of those $100 are left to Amazon?

That is a bad way of comparing for purposes of this conversation.

Amazon has to pay for shipping, pick & pack, customer service, return shipping, etc. That isn't free.

Re:Amazon Fire Phone by whatusername on Wednesday June 18, 2014 @06:59PM (#7913448)
Don't forget -- Google will show ads to me when I go looking for a rake. Amazon will tell me "Sorry, we don't ship rakes to your country"
Re:Amazon Fire Phone by modfodder on Wednesday June 18, 2014 @07:26PM (#7913534)
Or Amazon will tell you that rake's not available because they are trying to renegotiate their contract with the rake supplier.
Re:Amazon Fire Phone by opendais on Wednesday June 18, 2014 @08:11PM (#7913691)
More importantly, Google knows when you are looking for services and can market to that as well.