Transcript Google
BUS 550 Case Study
Textbook Chapter14
Google: Search, Online Advertising, and Beyond
Anthony Palanca
Google and Online Advertising
Online Ads have positive
growth since 2006
Google controls internet
search market share
Success through
matchmaking
Most valuable media
company in the world
Company Profile
Founded by Sergey Brin
and Larry Page in 1998
Headquartered in
Mountain View, CA
Green facility
Fortune’s Best Place to
Work For 2007-2008
Encourages innovation –
“20 percent time”
Internet Search
Google uses organic search and PageRank
Server farms needed for web index
Over 1 trillion URLs!
SEO is essential for marketing
Why Online Advertising?
Increased time spent online
Better ad performance tracking
Easier to target specific markets
Google’s Revenue Model
AdWords on Google search (2/3)
CPC and budget
Ad Rank
Automated auction with every search
Geotargeted
AdSense network (1/3)
More refined targeting
Various media formats
CPM and CPA
Customer Profiling and Targeting
Use of cookies
Computer profile
Retail shopping carts
Demographics
Privacy
Opt-in option and opt-out cookies
Interest-based ads
Missteps with Google Docs and Buzz
Online Fraud
Clicks and impressions
Enriching and Depleting
Click farms and Zombie networks
Rank-based impression
Disbarring
Link farming or spamdexing
Keyword stuffing
Business Challenges and Competitors
What happens when maturity hits?
Google’s competition
Emerging outlets such as mobile and social networks
Take bigger risks
Antitrust laws lead to less software bundling
Apple’s acquisition of Quattro Wireless
Bing and Yahoo
Google’s solutions
Increase internet access with O3b
Android
Multiple Choice
What are the names of Google’s advertising applications
and primary source of revenue?
A. AdWow and AdSensation
B. AdWare and AdSoft
C. AdWords and AdSense
D. AdMe and AdYou