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Google and the fundamentals of internet business


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Google and the fundamentals of internet business

  1. 1. Google & The Fundamentals of Internet Business <ul><li>Introduction </li></ul><ul><li>Google Overview & Business Model </li></ul><ul><li>Attention Economy </li></ul><ul><li>Free Economy </li></ul><ul><li>Network Economy </li></ul><ul><li>Gift Economy </li></ul><ul><li>Further Information </li></ul>
  2. 2. Introduction <ul><li>There are many ways to make money online. </li></ul><ul><li>The internet has allowed new business models to co-exist with traditional economic models. </li></ul><ul><li>4 new economic concepts for an internet economy: </li></ul><ul><ul><li>Attention Economy </li></ul></ul><ul><ul><li>Free Economy </li></ul></ul><ul><ul><li>Gift Economy </li></ul></ul><ul><ul><li>Network Economy </li></ul></ul>
  3. 3. Google Overview <ul><li>Google is one of the largest corporations on the internet, providing services to users around the world. </li></ul><ul><li>Google products and services include: </li></ul><ul><ul><li>Google Search </li></ul></ul><ul><ul><li>Google Docs </li></ul></ul><ul><ul><li>Google Maps </li></ul></ul><ul><ul><li>Google Wave </li></ul></ul><ul><ul><li>Gmail </li></ul></ul>
  4. 4. Google Business Model <ul><li>Google generates revenue from targeted advertising. </li></ul><ul><li>Google AdWords allows customers to create advertisements and target them to particular user profiles from within the Google network. </li></ul><ul><li>Google AdSense is the technology that matches AdWords advertisers to the users of Google's products and services. </li></ul>
  5. 5. Attention Economy <ul><li>Definition: To receive financial return through receiving attention. </li></ul><ul><li>A common model includes a product or service being offered for free. When attention is gained, it becomes possible to generate income from sponsorship, advertising or brand marketing. </li></ul><ul><li>Google offered a free web search portal, to which it added advertisements (AdWords and AdSense) to generate revenue. </li></ul>
  6. 6. Free Economy <ul><li>Definition: Providing a product or service without charge, with a hope that a profit will be returned at a later date. </li></ul><ul><li>Examples include eBay, Amazon, Facebook and Google </li></ul><ul><li>Google can be partially considered as a free economy as it offers many free products and services (it does, however, collect user data which is used to target advertisements most suited to users in it's AdSense program). </li></ul>
  7. 7. Network Economy <ul><li>* The internet has reduced the costs and increased the speed of information transmission. </li></ul><ul><li>* Technological advances and the speed and ease of communication have meant the internet can create real value for organisations that operate in an online networked economy. </li></ul><ul><li>* Google leveraged the networked economy by dominating the internet search market and offering an excellent free suite of online products (such as Google Docs and Gmail). They next montised the traffic (via AdSense and AdWords), rather than the content of their network, which allowed them to keep their products and services free and keep their customers returning and their network effect in place. </li></ul>
  8. 8. Gift Economy <ul><li>Gift Economy is similar to the free & attention economies, and is based on exchange, through providing gifts, information or services, rather than exchange of cash. </li></ul><ul><li>Wikipedia is an example of a gift economy. </li></ul><ul><li>Google initially used the concept of a Gift Economy to provide a search portal, before expanding to other economic models to generate revenue. </li></ul>
  9. 9. Further Information <ul><li>Google and the fundamentals of internet business: </li></ul><ul><li> </li></ul>