How Does Google Make Money V2

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5 minute overview of Google\'s Business Model and future directions.

Technology Business

How Does Make Money ? Prateek Gera

Advertising is the key source of revenue for Google today Source: Google 10-K Filing , Feb 2010 Advertising on Gaurav’s YouTube channel earns revenue for him and Google.

Google search enables two advertising revenue streams ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Ad Words and Ad Sense are the primary engines for the Advertising revenue Advertisers/ Business Owners Web/ Content Publishers Ad Words Ad Sense Advertisers use “Ad Words” to bid on keywords Content publishers use “Ad Sense” to become Google network members and earn revenue $ $ ,[object Object],[object Object],[object Object],[object Object]

There are two key trends that hold the potential of becoming big revenue drivers in the near future Convergence of Cell Phone & PC > 100,000 Android Phones activated every day Pervasive Internet > by 2011 5x > non –PC devices *IDC Google TV Source: JPMorgan: AdStats Oct TV advertising is $150bn TAM

Competition in core search driven advertising is growing but these will generate $2.38bn in 2010* ,[object Object],[object Object],[object Object],[object Object],[object Object],* Source Caris & Company Estimates

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In 1995 when the internet was only 3 years old 2 students Larry Page 22 years old and Sergey Brin 21 year old from Stanford university begin working on a search engine called back rub at that time they were 13 search engines to choose from but none of them the same potential as back rub did September 15 1997 Larry Page and Sergey Brin who were the founders of back rub decided to change the name of the search engine, and the inspiration came from the term used for a number with one hundred zeros googol with a slight change in the spelling its now called google as Larry Page quoted thanks for the name change no one today is asking did you back rub it (Our history in depth – company – Google, 2014) . Google is well known for its famous search engine, email service, web browser ,and a great number of applications downloaded into our smart phones ipads and pcs that we use daily at work at home and on the go.

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GOOGLE PROMOTION AND COMPETITIVE ADVANTAGE 2 Google Promotion and Competitive Advantage Running head: GOOGLE PROMOTION AND COMPETITIVE ADVANTAGE 1 GOOGLE PROMOTION AND COMPETITIVE ADVANTAGE 4 Promotion Google Incorporation, a technology company, based in the United States credits itself to being the most preferred search engine on the internet. The company specializes in the production, distribution, and sale of technology and internet related services. These products and services include cloud computing, online advertising, search engines, communication portals and the mobile phones. The company credits its success to its entry into diverse business sectors. The focus of this paper is to assess the company’s promotion strategies, as well as its competitive advantage with respect promotion. Google uses a promotional objective that is convenient for the users of its content. Its promotional strategy is centered on an interface free search page and websites that are clean and simple void of confusing and over advertising thus creating ease in the use of their services (McFinnigan, 2012). Another promotion strategy utilized by Google is ad-free web services with few suggested services offered by the company (Social Media: Google+ asks marketers to drive launch of network (2011). For instance, their email service, the Gmail web page, suggests a few of their very essential services such as Google Hangouts, Google Forms, Google Maps, News, and Translate. However, it makes use of targeted advertising of its products to other websites through its AdSense services (Social Media: Google+ asks marketers to drive launch of network (2011). Furthermore, Google makes use of Integrated Marketing Communication that makes all kinds of communication and messages which are prudently interconnected. Integrated Marketing Communications (IMC) is significant to the company for it allows promotion of content that is related to the contents of a web page (McFinnigan, 2012). Therefore, it eliminates over and confusing advertising. Other forms of advertising that the company uses include the use of flyers inside business magazines, use of its Ad Words segment that has links to its services and advertising to electronic media for example, Google Chrome has its television advertising (McFinnigan, 2012). Competitive Advantage in Promotion Competitive advantage is an essential aspect that determines profitability for Google. A prime example is an instance where the company possesses a competitive advantage with respect to promotion is the fact that unlike other search engines, its advertising strategy is clean, decent, and targeted. A visit to their search engine home page shows the Company’s logo in the middle of the page with a search bar underneath it. These aspects gives the company a competitive advantage since the visitors prefer an interface that is void of clutter, confusing advertising and unnecessary features such as those on the Yahoo search en ...

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K > UJ < John E. Gamble University of South Alabama G oogle was the leading Internet search f i r m i n 2012, w i t h a nearly 67 percent market share i n search f r o m home and w o r k computers and a 95 percent share i n searches performed f r o m mobile devices. Google's business model allowed advertisers to b i d on search terms that w o u l d describe their product or service on a cost-per-impression (CPI) or cost-per-click (CPC) basis. Google's search-based ads were displayed near Google's search results and generated advertis- i n g revenues o f more than $36.5 b i l l i o n i n 2011. The company also generated revenues o f about $1.4 b i l l i o n i n 2010 f r o m licensing fees charged to businesses that wished to install Google's search appliance o n company intranets and f r o m a variety o f new ventures. New ventures were becoming a growing p r i o r i t y w i t h Google management since the company dominated the market f o r search based ads and sought additional opportunities to sustain its extraordinary growth i n revenues, earnings, and net cash provided by operations. I n 2012, Google was pursuing a cloud comput- i n g initiative that was intended to change the market f o r c o m m o n l y used business productivity applications such as w o r d processing, spreadsheets, and presentation software f r o m the desktop to the Internet. I n f o r m a t i o n technology analysts believed that the market f o r such applications—collectively called cloud computing—could grow to $95 b i l l i o n by 2013. Google had also entered i n t o alliances w i t h Intel, Sony, D I S H Network, Logitech, and other f i r m s to develop the technology and products required to launch Google TV. Google T V was launched i n the U.S. i n 2011 and w o u l d allow users to search live network and cable programming; streaming videos f r o m providers such as N e t f l i x , A m a z o n Video O n Demand, and YouTube; and recorded programs on a D V R . The company also launched its G o o g l e + social networking site i n 2011 to capture additional advertising opportunities. Perhaps the company's most ambitious strategic initiative i n 2012 was its acquisition o f Motorola M o b i l i t y f o r $12.5 b i l l i o n , w h i c h put i t i n the hardware segment o f the smartphone and tablet computer industries. Analysts f o l l o w i n g the transaction saw the move to acquire Motorola M o b i l i t y as a direct attempt to m i m i c Apple's strategy used f o r the iPhone and iPad that tightly integrated hardware and software f o r its most profitable and fastest g r o w i n g products. Google had launched its A n d r o i d operating system f o r mobile phones i n 2008 and allowed wireless phone manu- facturers such as L G , H T C , and Nokia to produce Internet-enabled phones boasting features similar to those available o n Apple's iPhone. By 2012 ...

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Running Head: DIAGNOSING THE CHANGE DIAGNOSING THE CHANGE Diagnosing the Change Within Google and YouTube Using the Star Model Abstract This paper uses the star model to diagnose how Google and YouTube execute their change mission. Both websites are under the Google Inc. leadership, whose goal is to provide free useful information, while profiting from online advertising. Google Inc. supports its strategy by investing in research and development, outlining a clear mission statement for employees, and rewarding network members by sharing advertising revenue. The paper also covers Google Inc.’s SWOT analysis. It is a leader in the web search and video sharing industry, and makes most of its profit from the growing internet advertising business. However, Google Inc. is facing steep competition from other companies in the industry, and some of its attempts to explore other ventures have failed. Introduction The internet continues to grow exponentially as more people from around the world gain access. One of the most interesting things about the internet is that it is very democratic. Anyone can purchase a web page with very little capital and share their opinions. Another reason for the growth in internet usage is that there are more platforms with internet usage capabilities, such as cell phones, and motor vehicles. Advertisers cannot ignore this growth in internet usage. In fact, the revenue from internet advertising is catching up with the revenue of TV advertising. This creates opportunities for web-based companies to increase their profits. Google and YouTube are profiting from this shift in advertising by adopting advertising based platforms. This paper covers their strategies, people and practices, structure, rewards system, and SWOT analysis. Strategy Google and YouTube are under the same leadership, with very similar strategies to success. As mentioned in previous papers Google and YouTube lacked direction when both companies began. Under new leadership, profitability was added to the equation, using an advertising model. The new leadership saw both companies as game changers due to the competitive advantage of the growth in internet use, the popularity of search engine use, and the increasing power of video sharing. Both companies were/are leaders in their sectors. Google Inc’s leaders had a clear vision for both companies, to provide free and useful information/products, while profiting from advertising. This way, users of the free products and information can advertise Google and YouTube, reducing the need for a widespread advertising campaign. For example, college students learn about various topics watching YouTube videos, while drivers all over the country benefit from Google maps. When those users talk about the benefits of using these features, Google Inc. gets free advertising, while profiting from businesses advertising on both websites. People and Practices Its ...

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Cloud Frontiers: A Deep Dive into Serverless Spatial Data and FME

Cloud Frontiers: A Deep Dive into Serverless Spatial Data and FME

Cloud Frontiers: A Deep Dive into Serverless Spatial Data and FME

Repurposing LNG terminals for Hydrogen Ammonia: Feasibility and Cost Saving

Repurposing LNG terminals for Hydrogen Ammonia: Feasibility and Cost Saving

Repurposing LNG terminals for Hydrogen Ammonia: Feasibility and Cost Saving

Platformless Horizons for Digital Adaptability

Platformless Horizons for Digital Adaptability

Platformless Horizons for Digital Adaptability

Boost Fertility New Invention Ups Success Rates.pdf

Boost Fertility New Invention Ups Success Rates.pdf

Boost Fertility New Invention Ups Success Rates.pdf

Web Form Automation for Bonterra Impact Management (fka Social Solutions Apri...

Web Form Automation for Bonterra Impact Management (fka Social Solutions Apri...

Web Form Automation for Bonterra Impact Management (fka Social Solutions Apri...

Navigating the Deluge_ Dubai Floods and the Resilience of Dubai International...

Navigating the Deluge_ Dubai Floods and the Resilience of Dubai International...

Navigating the Deluge_ Dubai Floods and the Resilience of Dubai International...

How Does Google Make Money V2

1. How Does Make Money ? Prateek Gera

2. Advertising is the key source of revenue for Google today Source: Google 10-K Filing , Feb 2010 Advertising on Gaurav’s YouTube channel earns revenue for him and Google.

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5. There are two key trends that hold the potential of becoming big revenue drivers in the near future Convergence of Cell Phone & PC > 100,000 Android Phones activated every day Pervasive Internet > by 2011 5x > non –PC devices *IDC Google TV Source: JPMorgan: AdStats Oct TV advertising is $150bn TAM

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