by michael fuhrman
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By Michael Fuhrman. Mission Statement. To organize the world's information and make it universally accessible and useful. History. Founded by Larry Page and Sergie Brin in 1996 Originally a research project at Stanford Created new technology: Page Rank - PowerPoint PPT PresentationTRANSCRIPT
By Michael Fuhrman
Mission StatementTo organize the world's information and make it
universally accessible and useful
HistoryFounded by Larry Page and Sergie Brin in 1996
Originally a research project at Stanford
Created new technology: Page Rank Website’s relevance based on the number of
pages and the importance of those pages, that linked back to the original site
Based out of a friend’s garage in Menlo Park
By 1999 the headquarters moved to Mountain View
Timeline1996: Started Google as a research project
1997: Offer to sell Google to George Bell for 1M and are rejected
1998: Incorporated as private company
2000: Created AdWords after Bill Gross of Idealab refused to sell them a similar idea
2004: IPO Market Cap of 23 billion
Current Valuation: 195 billion
Culture Focus on creating a fun work environment
Restaurants, gyms, Laundromats, etc. in order to keep employees focused on work
Casual dress code
“Googlers” encouraged to spend 20% of time on innovation
Ranked 1st by Fortune Magazine’s list for the best companies to work for
“You can make money without doing evil”
“You can be serious without a suit”
“Work should be challenging but the challenge should be fun”
Core CompetenciesFocus on pairing internet surfers with
advertisers and taking a cut $29 billion in 2010
Their matchmaking capabilities have been considered “the most successful business idea in history”
Earns more advertising revenue than any US media company
US Search Market Share
Understanding SearchPage Rank
Popularity Focus: no charge for web ranking in organic search results
Pages ranked by how many other pages link to them
Also about 200 other criteria to rank relevanceSearch Engine Optimization
Link Fraud: Creating bogus websites to link back to the primary site JC Penny: Organic results plummeted from 1st to
71st
Search Continued..Uses “Spiders”, “Web crawlers”, or “software
robots” to crawl web and uncover info
Search results provide copy of site’s contents
Runs over 1.4 million servers to index the web
AdWordsSearch Engine Marketing (SEM) – running and
optimizing search engine ad campaigns
Google AdWords Setup AdWords Account Specify ad campaign Bid on key words (actually pay 1 cent more than next
highest bid) Billed based on a pay per click (PPC) model
Results ranked based on max cost per click and quality score
Ranking = Max CPC x Quality Score Provides about 66% of Google’s total revenue
AdWords Continued..Quality Score
Click-through rate: The number clicks an add receives divided by the number of times it is shown
Relevance to search History of click performance for keyword Assessment of user experience with specific page
Most Expensive Words
AdSenseGives users programing code to host other
advertisements on their own sites
No discretion over what adds are shown
Users are paid 70 cents on the dollar by Google
30% of Google’s Revenues come from AdSense
Customer ProfilingCookies: Files stored on the computer which are
accessed by the web server or client computer to specifically tailor a visit IP Address: Location, employer, university, etc. Browser: Tech ads to Chrome users, etc. Past web history Items placed in shopping cart
Privacy PolicyOpt-out cookie
User data not sold to 3rd parties
Activities in Gmail, Docs and other services are not added to user profiles
Full disclosure of targeting
Privacy Issues2009 flaw granted access unauthorized access
to Google docs
2010 street view cars inadvertently collected personal data such as emails and passwords
2011 plugged a hole which could potentially allow hackers access to personal information from Android phones
Potential ProblemsLocating future growth models will be hard after
AdWords and AdSense mature
Inability to successfully enter the social media market Google Plus
Low switching costs for advertisers
Competition
CompetitionFacebook
Apple
Microsoft Bing
Amazon
Yahoo
AcquisitionsMotorola
$12.5 billionBiggest deal to date 17,000 patents (protection against potential
iPhone suits)
Youtube 1.65 billion 2009 ad revenue: $240 million 2009 operating expenses: $711 million
$471 million shortfall
Current DevelopmentsGoogle Wallet
Google+
Google Apps Web-based software as service offerings Word processor Spreadsheets Presentation software Google Music
Questions 1. Who is Google’s biggest current competitor?
A. Apple B. Facebook C. Microsoft D. Yahoo
2. What has been the main contributor to the financial success of Google? A. Youtube B. AdSense C. AdWords D. Google Aps
3. What is link fraud? A. Creating bogus websites that link back to the primary site B. Creating faulty links to malware sources on a website C. Stealing links from other companies and putting them on your own website D. Disabling competitor’s links to make your own page-rank higher