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G o o g l e Bui Thuy Hanh Chong Kairu Lee Longfu Low Tee Tong Tay Zi Kun, Lewis I’m feeling lucky! Monday, March 19, 2012
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Page 1: MKT 2401 - Final Version, Minus Small Company!

GoogleBui Thuy Hanh

Chong Kairu

Lee Longfu

Low Tee Tong

Tay Zi Kun, Lewis

I’m feeling lucky!

Monday, March 19, 2012

Page 2: MKT 2401 - Final Version, Minus Small Company!

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

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TimelineOur short timeline.

GoogleMonday, March 19, 2012

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Google

Google timeline: 1995 - 2011

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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

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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.

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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

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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).

+

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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.

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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.

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Business ModelBring in the money!

GoogleMonday, March 19, 2012

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Google

Google’s Business Model

AdWords

AdSense

DoubleClick

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Google

Advertisers

Web Users

Google

+

Other sites

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Google

Google shirts

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Google

AdWords

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Google

Keyword relevance

Historical CTR Bid auctions

Quality score

Cost-per-click Ad ranking

Concept

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Google

AdSense

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Google

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

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

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

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

Concept

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Google

DoubleClick

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DoubleClick Concept

Ad placement

Campaign analyzing

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

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Success FactorsWhat makes us tick?

GoogleMonday, March 19, 2012

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Google

Success FactorsTrinity Cycle of Factors.

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Google

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

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Google

Innovative Business Model

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Google

Branding

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Google

Success FactorsTrinity Cycle of Factors.

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ChallengesObstacles to cross.

GoogleMonday, March 19, 2012

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Google

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

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Google

Brain Drain

Google

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Google

Brain Drain

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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

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Google

Market Penetration: China

44% of Asian Internet users

40% YOY Growth

RMB $1.3 Trillion

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Competitors’ AnalysisOur rivals!

GoogleMonday, March 19, 2012

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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

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Google

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

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Google

Global Online AdvertisingMarket Share

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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

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Google

Yahoo Dying? Google Total Dominance?

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Google

No!

Yahoo! generates its own content

Yahoo! allows advertisers to place premium ads at its homepage

Yahoo! is “more localized”

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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

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Google

Facebook Advantages

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

Facebook & Bing social search

Facebook Instant Personalization

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Google

Results: Undecided.

Facebook ads exposure is also limited to social media platform

Facebook “ad-fatigue” problem

Google’s superior search engine

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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

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Thank you.Questions?

Monday, March 19, 2012