2. Who Are We & What Are We Worth?
• Search Star was set up in 2005
• PPC, Analytics & Conversion are core services
• 18 strong team based in Bath
• We depend on Google…but how much are we
worth to Google?
3. IPO’d 19th August 2004 @ $85
Market Capitalisation on 22nd August 2014 = $399bn
8. Relevant Ads on Multiple Screens & Devices
“We’re seeing tremendous innovation in advertising, which will help
us monetize mobile queries more effectively than desktop today.
Indeed, our mobile monetization per query is already a significant
fraction compared to desktop. In short, as we transition from one
screen to multiple screens, Google has enormous opportunities to
innovate and drive ever-higher monetization, just like search in 2000”
Larry Page Oct 2012
9. $$$$$$$$$$$$$$$$$$$$$$$$s
Payments to
network &
distribution
partners
Data centres,
content acquisition
costs, credit card
charges etc.
2010 2011 2012 2013
Google Revenue $29,321 $37,905 $50,175 $59,825
Traffic Acquisition Cost $7,317 $8,811 $10,956 $12,258
Other Cost of Revenue $3,100 $4,377 $9,678 $13,600
Total Cost of Revenue $10,417 $13,188 $20,634 $25,858
R&D $3,762 $5,162 $6,793 $7,952
Sales & Marketing $2,799 $4,589 $6,143 $7,253
General Admin $1,962 $3,224 $3,845 $4,796
Costs & Expenses $8,523 $12,975 $16,781 $20,001
Total Costs $18,940 $26,163 $37,415 $45,859
Income From Operations $10,381 $11,742 $12,760 $13,966
Net Income After Tax $8,505 $9,737 $10,737 $12,920
Google Headcount 32,467 37,544 43,862
Google Revenue Per Head $1.17 $1.34 $1.36
($ in millions)
10. So What’s Search Star To Google?
• If Search Star manages £20m pa…
• Google last 12 month revenue = $60.8bn
– $60.8bn = £36.6bn
– UK is 9% of global revenue = £3.3bn
– Search Star manages 0.6% of UK revenues