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I tend to think it has less to do with adwords spend and more to do with user expectations that a certain site will appear up top in the search results. When you search for shoes, if Zappos doesn't show, there's a problem.
However, that Zappos shows 5 times, is a big problem as well that I expect Google will want to do something about.
People expect certain results to appear at the top, and Google tries to make sure that happens. The crazy thing is that while at one time the natural search results were grand equalizer for marketers, now it seems that brand recognition is really driving the search results more than actual optimization (to a certain extent at least.)
This is extremely apparent in the insurance space where affiliate sites that rank well are quickly removed from the first page of any competitive term.
Offline ad spending now heavily dictates online search results in competitive vertical. The rich get richer, etc.
For example if you look at randomblog. blogger.com or randomblog. wordpress.com - they are all subdomains within a powerful main domain, however they won't just feature in SERPs without any effort from the users.
http://www.youtube.com/watch?v=ERj43anMs1Y
yep it is aggressive but a bit spammy as well
Compared to what Zappos is doing, however, my client's use of subdomains was minimal. I do suspect this will backfire on them eventually. It is definitely spammy and intended for no other reason but to rank.
But, it's nice while it lasts.
Somebody gave them this advice. Im sure they were paid well for this advice, but surely their Google domination won't last fotever.
Yahoo insisted that the subdomains be converted to subdirectories. We did and got back in.
Try again
Covering my ears, waiting, for a very loud backfire sound...
They must have spent a fortune on SEO
its no big deal no a days.
You can also start off ,getting forms and all kinds of
legal documents. Its no big deal
there are a lot opportunities out there and all kinds of
other affiliate marketing programs out there, so what
are you waiting for get started.