MKT 2401 - Final Version, Minus Small Company!

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All except my slides!

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GoogleBui Thuy Hanh

Chong Kairu

Lee Longfu

Low Tee Tong

Tay Zi Kun, Lewis

I’m feeling lucky!

Monday, March 19, 2012

Google

Agenda

Timeline - Our short history

Business Model - Bring in the money!

Success Factors - What makes us tick?

Challenges - Obstacles to cross.

Competitors’ Analysis - Our rivals!

Monday, March 19, 2012

TimelineOur short timeline.

GoogleMonday, March 19, 2012

Google

Google timeline: 1995 - 2011

Monday, March 19, 2012

Google

1995

1998

Larry Page and Sergrey Brin founded Google *Googol = 1, 000…..000 (100 zeros)

Google beta first introduced!

The first Google doodle ever.

Page Rank algorithm introduced.

• Link popularity: a page is ranked higher if there are more links to it.• A number Google assigns to a page to represent the overall link popularity of that page (from 0 to 10).

Google: PR = 9Facebook: PR = 9Twitter: PR = 10

Monday, March 19, 2012

Google

Before 2000

Google ran without advertisements.

Oct. 2000

Google AdWords invented. Google started to bring in advertisements among search results.

Text-based advertisements

Cost-per-thousand pricing model. The advertisers are charged every 1,000 clicks.

Feb.2002

AdWords changed into pay-per-click basis model.

Monday, March 19, 2012

Google

Feb. 2002

2003

AdWords changed into pay-per-click basis model.Advertisers bid on keyword targeting.

!"#$%

!&%

!"#$%

!"#'$%

AdSense introduced: advertisements appeared in specific websites.

A solution for publisher!

• Advertise relevant products.

• $$$ for the publisher!

AdSense

Monday, March 19, 2012

Google

2005

2007

Site Targeting(an expansion of AdWords)allows advertisements appear in specific websites according to advertisers’ preferences.

Site Targeting

Google AdWords collaborated with Salesforce.com CRM (customer relation management technology).

+

Monday, March 19, 2012

Google

Jun. 2007

2010

Apr. 2011

+Offers technology for

advertisers to allow clients to traffic, target, deliver, and report on their campaigns

(such as AdWords and AdSense).

Google boughtDouble Click.

Google createdGoogle Mobile Ads.

Google Website Optimiser

Help track effectiveness of advertisements.

Monday, March 19, 2012

Google

Jul. 2011

AdWords Express for small and local business and local customers.

Done in 5 minute.Easy to set up.

When click, address is shown in Google Map.

Monday, March 19, 2012

Business ModelBring in the money!

GoogleMonday, March 19, 2012

Google

Google’s Business Model

AdWords

AdSense

DoubleClick

Monday, March 19, 2012

Google

Advertisers

Web Users

Google

+

Other sites

Monday, March 19, 2012

Google

Google shirts

Monday, March 19, 2012

Google

AdWords

Monday, March 19, 2012

Google

Keyword relevance

Historical CTR Bid auctions

Quality score

Cost-per-click Ad ranking

Concept

Monday, March 19, 2012

Google

AdSense

Monday, March 19, 2012

Google

!"#$%&'$(($)*+",*-'.$)'/&01,*&'$/"&)1'

23*&)"456&'476&)51,"8'

(349$)%'.$)':$$83&'

!"#)&41&7'27'&;($1+)&'.$)'476&)51&)1'

Concept

Monday, March 19, 2012

Google

DoubleClick

Monday, March 19, 2012

Google

DoubleClick Concept

Ad placement

Campaign analyzing

Combining Google's infrastructure with DoubleClick's knowledge of agencies and publishers

Monday, March 19, 2012

Success FactorsWhat makes us tick?

GoogleMonday, March 19, 2012

Google

Success FactorsTrinity Cycle of Factors.

Monday, March 19, 2012

Google

People(L to R): Sergey Brin, Eric Schmidt, Larry Page

Monday, March 19, 2012

Google

Innovative Business Model

Monday, March 19, 2012

Google

Branding

Monday, March 19, 2012

Google

Success FactorsTrinity Cycle of Factors.

Monday, March 19, 2012

ChallengesObstacles to cross.

GoogleMonday, March 19, 2012

Google

Is your name Google?Cos you have everything I’m searching for.

Monday, March 19, 2012

Google

Brain Drain

Google

Monday, March 19, 2012

Google

Brain Drain

Monday, March 19, 2012

Google

Lawsuits

“it breaches the union's law. . the new rules are not in accordance with the European law, and that the transparency rules have not been applied,”-EU justice commissioner Viviane Reding

“Google could face a federal penalty of $16,000 per day per violation if it were found to have violated”An Federal Trade Commission spokeswoman

Monday, March 19, 2012

Google

Market Penetration: China

44% of Asian Internet users

40% YOY Growth

RMB $1.3 Trillion

Monday, March 19, 2012

Competitors’ AnalysisOur rivals!

GoogleMonday, March 19, 2012

Google

Google Competitors’ Analysis in Asia

General purpose search engines

Vertical search engines and e-commerce websites

Social networks

Commercial software companies

Providers of online products and services

Monday, March 19, 2012

Google

Top 3 Competitors(L to R): Yahoo, Facebook, Baidu

Monday, March 19, 2012

Google

Global Online AdvertisingMarket Share

Monday, March 19, 2012

Google

Yahoo

Popularity:Google 83.28% Yahoo! 6.24%

Market Share:Google’s 44.1% Yahoo! 8.3%

Google generate > 9 times on average human traffic

Monday, March 19, 2012

Google

Yahoo Dying? Google Total Dominance?

Monday, March 19, 2012

Google

No!

Yahoo! generates its own content

Yahoo! allows advertisers to place premium ads at its homepage

Yahoo! is “more localized”

Monday, March 19, 2012

Google

Facebook

845 million monthly active users comparable to Google ; 184 million active users in Asia alone.

Dominant player in social media

Similar PPC model

Monday, March 19, 2012

Google

Facebook Advantages

Community-based platform with sophisticated demographics, geographic and interest targeting.

Facebook & Bing social search

Facebook Instant Personalization

Monday, March 19, 2012

Google

Results: Undecided.

Facebook ads exposure is also limited to social media platform

Facebook “ad-fatigue” problem

Google’s superior search engine

Monday, March 19, 2012

Google

Chinese Competitor: Baidu

Baidu dominated the China search query market (83.6% as compared to Google’s 11.1% in 2010)

No political restrictions

Localized search engine

Monday, March 19, 2012

Thank you.Questions?

Monday, March 19, 2012

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