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How Google Makes Its Money

                         A continuing saga in 5 acts

                                                           By Dave Fenwick




DISCLAIMER: The following presentation is for process demonstration purposes only, and is not intended to be used to land an passenger airliner.
Almost 100% is from Advertising

Of course,
everyone on the
planet knows
this, and its no
surprise
                                                  Graphic
                                                  source:
                                                  BNET



• So the much more interesting question is:
     – How will Google make its money tomorrow?

1/20/11                   Act 1                             2
Competitors


                      •   Competitive Features
                          Matrix
                          – Learn the Industry
                          – Find differentiators
                          – Identify Value
                            Drivers
                          – Define Features




1/20/11       Act 2                            3
Future Revenue Sources
                            Attributes

• High growth potential            • Closed System
     – expansive market                – Protectionist, lock-in
• No dominant player yet           • Social
• Acquisition potential                – With whom? Or what?
     – Markets, products,          • Hardware ties
       technology                      – More lock-in
• Synergy w/ existing              • High ROI
  revenue sources
     – AdSense



1/20/11                        Act 3                              4
Future Revenue Sources
                                 Possibilities

•   Another Killer-App, à la               •   Diversify (current visible
    AdSense (search)                           strategy)
     – “It’s best to do one thing               – Google apps targeting MS,
       really, really well”                       IBM, Apple (hardware
       violation?                                 independent)
                                                – Social: Google Me (w/ other
     – “There’s always more
                                                  people… or computer
       information out there”                     agent?)
          • Data, Information,
                                                – OS (hardware tie-in)
            Knowledge, Wisdom
            pyramid                                 • Chrome
              – Move up the pyramid?                • Android (mobile)
              – AI opportunity?                 – Google Voice (potential for
•   Do it ALL (hedge bets)                        social; audible AdVoice?)

1/20/11                                Act 4                                    5
Decision Making (under uncertainty)
•   Priorities (gap analysis)
     – Rank by Importance
     – But only if there’s a
       perceived need
       (opportunity)
          • Underserved
          • Room to improve
•   Other dimensions
     – Profit opportunity
     – ROI



1/20/11                        Act 5 (rinse & repeat)   6

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Google Interview Presentation, Jan 2011

  • 1. How Google Makes Its Money A continuing saga in 5 acts By Dave Fenwick DISCLAIMER: The following presentation is for process demonstration purposes only, and is not intended to be used to land an passenger airliner.
  • 2. Almost 100% is from Advertising Of course, everyone on the planet knows this, and its no surprise Graphic source: BNET • So the much more interesting question is: – How will Google make its money tomorrow? 1/20/11 Act 1 2
  • 3. Competitors • Competitive Features Matrix – Learn the Industry – Find differentiators – Identify Value Drivers – Define Features 1/20/11 Act 2 3
  • 4. Future Revenue Sources Attributes • High growth potential • Closed System – expansive market – Protectionist, lock-in • No dominant player yet • Social • Acquisition potential – With whom? Or what? – Markets, products, • Hardware ties technology – More lock-in • Synergy w/ existing • High ROI revenue sources – AdSense 1/20/11 Act 3 4
  • 5. Future Revenue Sources Possibilities • Another Killer-App, à la • Diversify (current visible AdSense (search) strategy) – “It’s best to do one thing – Google apps targeting MS, really, really well” IBM, Apple (hardware violation? independent) – Social: Google Me (w/ other – “There’s always more people… or computer information out there” agent?) • Data, Information, – OS (hardware tie-in) Knowledge, Wisdom pyramid • Chrome – Move up the pyramid? • Android (mobile) – AI opportunity? – Google Voice (potential for • Do it ALL (hedge bets) social; audible AdVoice?) 1/20/11 Act 4 5
  • 6. Decision Making (under uncertainty) • Priorities (gap analysis) – Rank by Importance – But only if there’s a perceived need (opportunity) • Underserved • Room to improve • Other dimensions – Profit opportunity – ROI 1/20/11 Act 5 (rinse & repeat) 6