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By Michael Fuhrman

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

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By Michael Fuhrman

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  1. By Michael Fuhrman

  2. Mission Statement • To organize the world's information and make it universally accessible and useful

  3. History • Founded 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

  4. Timeline • 1996: 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

  5. 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”

  6. Core Competencies • Focus 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

  7. US Search Market Share

  8. Understanding Search • Page 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 relevance • Search Engine Optimization • Link Fraud: Creating bogus websites to link back to the primary site • JC Penny: Organic results plummeted from 1st to 71st

  9. 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

  10. AdWords • Search 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

  11. 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

  12. Most Expensive Words

  13. AdSense • Gives 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

  14. Customer Profiling • Cookies: 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

  15. Privacy Policy • Opt-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

  16. Privacy Issues • 2009 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

  17. Potential Problems • Locating 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

  18. Competition • Facebook • Apple • Microsoft • Bing • Amazon • Twitter • Yahoo

  19. Acquisitions • Motorola • $12.5 billion • Biggest 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

  20. Current Developments • Google Wallet • Google+ • Google Apps • Web-based software as service offerings • Word processor • Spreadsheets • Presentation software • Google Music

  21. 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

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