By Zhenzheng LinADV 420Fall 2011 NMDLFinal Project
Google –Business Overview• Established in 1998, it has now surpassed Time Warner to be the number one revenue generating media conglomerates.• Three major acquisitions in Google’s history with over USD 1 billion price tag. • On October, 2006, Google acquired Doubleclick for USD 1.65 billion. • On April 2007, Google acquired video sharing site Youtube for USD 3.1 billion. • On April, 2011, mobile giant Motorola for USD 12.5 billion.• Google’s annual revenue in 2011 -USD 37.0 billion. • Paid search revenue (mostly Google Adwords) accounts for 69 percent (USD 25.53 billion) • Display advertising revenue (Adsense display, sales of video and banner ads on YouTube) accounts for 26 percent, with the amount of USD 9.62 billion. • Google’s mobile advising sector, a run rate of over USD 2.5 billion
Challenges and Goals• Google’s effort in Youtube and Adsense has been paying off• The current focus is on the development of mobile advising sector• The internet is moving to mobile• Google’s conquest towards the mobile world is just at the beginning• Google should utilize its own social media products to expand its mobile coverage• Fully develop and control consumers’ end products, which can be: • mobile video • social network • mobile payment tools • mobile GPS device • mobile phones.
Google –The Advertising Company• The essential theme of Google’s products - • To generate advertising revenues through the established marketing channels by connecting distributers and consumers. • Public campaigns would emphasize publicity for distributers for consumer, and resource for consumers
Introduction Strategies• “Search Your Life Perfectly”• Google is not only about “making money without doing evil”.• Utilizing own Youtube and Google Plus sites, using successful example from previous super bowl ad Parisian Love to fully create public buzz• Collecting lovely stories from users around the world, encourage them to share on Youtube• Collecting inspiring search stories using Google’s search engine • People find and reconnect with lost relatives with Google • People who connect and help people below poverty with Google• The search engine is about connect. Raise public awareness, user participation and brand loyalty – A series of stories
Short term strategies• Following the buzz of “Search Your Life Perfectly”• Pushing for display advertising sales in mobile devises, and inserting advertising product in Youtube videos • Involvement of VEVO • Network speed and capacity to allow mobile access of Youtube app• To continue develop Google’s location based service product like Google Map, to create a better integrated local information review sharing system that include: • local deals - Dealmap • public venue - Zagat • business reviews –Google Map • real estate reviews –Google Real Estate• This would not only be a great referral method among social groups, but also a much broader marketing channel to connect local business and consumers, the opportunities created in between can be huge • Simulating Facebook and Foursqaure’s model -Google Plus• Develop more mobile apps for Google’s own products
Mid-term and long term strategies• To continue the development on personal assistant products- • Visual assistant -Google Goggle • Voice assistant products (Apple has gone many steps further with SIRI)• Keep the systems partially open for third party editing. It is Google’s tradition to keep its products and systems open to third parties.• With strategies on Adsense, Google Maps, Google +1 button, Android App Inventor, Google has been fully utilize resources across the internet to benefit its system.
Budget, Timeline -Introduction Strategies• Campaign launch dated December, 2011 • Run for a period of 45 days, during the holiday season when people have spare time and are all dire to be connected • Estimated budget USD 50K/month• Monitor and measure Google’s market shares in both PC and Mobile sector • Google search engine currently at 65.6%• Monitor campaign participants and views/likes• Monitor adware/adsense user volume• Monitor Google + users and Youtube traffic• Make adjustments if necessary, based on feedback, bring campaign to mainstream media including TV and magazines • Run from Christmas to Super Bowl to maximize viewership • Estimated budget USD 10 Million
Timeline -Future Strategies• Pushing for display advertising sales in mobile devises, and inserting advertising product in Youtube videos • Early 2012• To continue develop Google’s location based service product like Google Map, to create a better integrated local information review sharing system • May 2012, prior to summer vacation season and school recess, continuously to be refined• Visual assistant -Google Goggle• Voice assistant products (Apple has gone many steps further with SIRI) • November, 2012, prior to holiday season
Evaluating success • 10% annual growth in PC, 250% annual growth in Mobile • Current Google Annual Revenue Breakdown: • Paid search: $25.53 billion • Display: $9.62 million • Google Annual Revenue Breakdown by end of 2012: • PC paid search: $28.083 billion • PC display: $10.58 million • Total US (at 55 percent): $21.26 billion • Total international (at 45 percent): $17.98 billion • Mobile paid search: $4.37 billion • Mobile display: $1.875 million • Total US (at 55 percent): $3.44 billion • Total international (at 45 percent): $2.81 billionRevenue Data from Searchengineland.com Will Google See $6.25 Billion In Mobile Ad Revenue Next Year? Oct 17, 2011 at 3:58pm ET by Greg Sterling