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Google
                          I’m feeling lucky!




                              Bui Thuy Hanh
                               Chong Kairu
                                Lee Longfu
                              Low Tee Tong
                            Tay Zi Kun, Lewis




Monday, March 19, 2012
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!



                                                      Google
Monday, March 19, 2012
Timeline
         Our short timeline.




                               Google
Monday, March 19, 2012
Google timeline: 1995 - 2011




                                                        Google
Monday, March 19, 2012
1995        Larry Page and Sergrey Brin founded Google
                                           *Googol = 1, 000…..000 (100 zeros)




             1998        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.                     Google: PR = 9
                                                         • A number Google assigns to a page to          Facebook: PR = 9
                                                         represent the overall link popularity of that   Twitter: PR = 10
                                                         page (from 0 to 10).
                                                                                                             Google
Monday, March 19, 2012
Before     Google ran without advertisements.
              2000

                         Google AdWords invented.
               Oct.      Google started to bring in
               2000      advertisements among search results.

                                                                     Text-based advertisements



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



               Feb.      AdWords changed into pay-per-click basis model.
               2002


                                                                                          Google
Monday, March 19, 2012
Feb.      AdWords changed into pay-per-click basis model.
               2002                Advertisers bid on keyword targeting.


                                   !"#$%


                                                                !&%


                                           !"#$%
                                                                  !"#'$%




                          AdSense introduced: advertisements appeared in
               2003                     specific websites.
                                                                                A solution for publisher!

                                                                                • Advertise relevant products.
                                                                                • $$$ for the publisher!



                                                                           AdSense


                                                                                                     Google
Monday, March 19, 2012
Site Targeting
                         (an expansion of AdWords)
               2005      allows advertisements appear in
                         specific websites according to
                         advertisers’ preferences.

                                                           Site Targeting




                         Google AdWords collaborated
                         with Salesforce.com CRM
               2007      (customer relation management
                         technology).


                                                              +
                                                                            Google
Monday, March 19, 2012
Jun.
               2007
                         Google bought
                         Double Click.                           +        Offers technology for
                                                                      advertisers to allow clients to
                                                                       traffic, target, deliver, and
                                                                       report on their campaigns
                                                                         (such as AdWords and
                                                                                AdSense).



                         Google created
               2010      Google Mobile Ads.




               Apr.      Google Website
                         Optimiser
               2011

                                              Help track effectiveness of
                                                   advertisements.

                                                                                         Google
Monday, March 19, 2012
Jul.     AdWords Express for small and local
                           business and local customers.
               2011




                                                                 Done in 5 minute.
                                                                  Easy to set up.
                                                               When click, address is
                                                               shown in Google Map.




                                                                             Google
Monday, March 19, 2012
Business Model
         Bring in the money!




                               Google
Monday, March 19, 2012
Google’s Business Model


                AdWords
                AdSense
                DoubleClick




                                            Google
Monday, March 19, 2012
Advertisers     Google

                                  +
                                      Other sites




                                      Web Users


                                            Google
Monday, March 19, 2012
Google shirts




                                         Google
Monday, March 19, 2012
AdWords
                                   Google
Monday, March 19, 2012
Keyword
                         relevance   Quality   Cost-per-click
                  Historical CTR
                   Bid auctions      score      Ad ranking




                                     Concept
                                                                Google
Monday, March 19, 2012
AdSense
                                   Google
Monday, March 19, 2012
!"#$%&'
                         !"#)&41&7'27'
                                         $(($)*+",*-'
                         &;($1+)&'.$)'
                                         .$)'/&01,*&'
                          476&)51&)1'
                                           $/"&)1'



                                  23*&)"456&'
                                  476&)51,"8'
                              (349$)%'.$)':$$83&'




                           Concept
                                                        Google
Monday, March 19, 2012
DoubleClick
                                       Google
Monday, March 19, 2012
DoubleClick Concept

              Ad placement
              Campaign analyzing
              Combining Google's
              infrastructure with
              DoubleClick's
              knowledge of agencies
              and publishers


                                      Google
Monday, March 19, 2012
Success Factors
         What makes us tick?




                               Google
Monday, March 19, 2012
Success Factors
                          Trinity Cycle of Factors.
                                                      Google
Monday, March 19, 2012
People
              (L to R): Sergey Brin, Eric Schmidt, Larry Page
                                                           Google
Monday, March 19, 2012
Innovative Business Model
                                       Google
Monday, March 19, 2012
Branding
                                    Google
Monday, March 19, 2012
Success Factors
                          Trinity Cycle of Factors.
                                                      Google
Monday, March 19, 2012
Challenges
         Obstacles to cross.




                               Google
Monday, March 19, 2012
Is your name Google?
                    Cos you have everything I’m searching for.
                                                                 Google
Monday, March 19, 2012
Brain Drain

                          Google




                                       Google
Monday, March 19, 2012
Brain Drain
                                       Google
Monday, March 19, 2012
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



                                                      Google
Monday, March 19, 2012
Market Penetration: China


              44% of Asian Internet
              users
              40% YOY Growth
              RMB $1.3 Trillion




                                        Google
Monday, March 19, 2012
Competitors’ Analysis
         Our rivals!




                                 Google
Monday, March 19, 2012
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



                                                                Google
Monday, March 19, 2012
Top 3 Competitors
                         (L to R): Yahoo, Facebook, Baidu
                                                            Google
Monday, March 19, 2012
Global Online Advertising
                           Market Share
                                               Google
Monday, March 19, 2012
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

                                        Google
Monday, March 19, 2012
Yahoo Dying?
                 Google Total Dominance?



                                       Google
Monday, March 19, 2012
No!
              Yahoo! generates its
              own content
              Yahoo! allows
              advertisers to place
              premium ads at its
              homepage
              Yahoo! is “more
              localized”


                                           Google
Monday, March 19, 2012
Facebook
              845 million monthly
              active users
              comparable to
              Google ; 184 million
              active users in Asia
              alone.
              Dominant player in
              social media
              Similar PPC model

                                         Google
Monday, March 19, 2012
Facebook Advantages


              Community-based platform with sophisticated
              demographics, geographic and interest targeting.
              Facebook & Bing social search
              Facebook Instant Personalization




                                                                 Google
Monday, March 19, 2012
Results: Undecided.


              Facebook ads exposure is also limited to social media
              platform
              Facebook “ad-fatigue” problem
              Google’s superior search engine




                                                                 Google
Monday, March 19, 2012
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




                                                              Google
Monday, March 19, 2012
Thank you.
                           Questions?




Monday, March 19, 2012

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MKT 2401 - Final Version, Minus Small Company!

  • 1. Google I’m feeling lucky! Bui Thuy Hanh Chong Kairu Lee Longfu Low Tee Tong Tay Zi Kun, Lewis Monday, March 19, 2012
  • 2. 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! Google Monday, March 19, 2012
  • 3. Timeline Our short timeline. Google Monday, March 19, 2012
  • 4. Google timeline: 1995 - 2011 Google Monday, March 19, 2012
  • 5. 1995 Larry Page and Sergrey Brin founded Google *Googol = 1, 000…..000 (100 zeros) 1998 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. Google: PR = 9 • A number Google assigns to a page to Facebook: PR = 9 represent the overall link popularity of that Twitter: PR = 10 page (from 0 to 10). Google Monday, March 19, 2012
  • 6. Before Google ran without advertisements. 2000 Google AdWords invented. Oct. Google started to bring in 2000 advertisements among search results. Text-based advertisements Cost-per-thousand pricing model. The advertisers are charged every 1,000 clicks. Feb. AdWords changed into pay-per-click basis model. 2002 Google Monday, March 19, 2012
  • 7. Feb. AdWords changed into pay-per-click basis model. 2002 Advertisers bid on keyword targeting. !"#$% !&% !"#$% !"#'$% AdSense introduced: advertisements appeared in 2003 specific websites. A solution for publisher! • Advertise relevant products. • $$$ for the publisher! AdSense Google Monday, March 19, 2012
  • 8. Site Targeting (an expansion of AdWords) 2005 allows advertisements appear in specific websites according to advertisers’ preferences. Site Targeting Google AdWords collaborated with Salesforce.com CRM 2007 (customer relation management technology). + Google Monday, March 19, 2012
  • 9. Jun. 2007 Google bought Double Click. + Offers technology for advertisers to allow clients to traffic, target, deliver, and report on their campaigns (such as AdWords and AdSense). Google created 2010 Google Mobile Ads. Apr. Google Website Optimiser 2011 Help track effectiveness of advertisements. Google Monday, March 19, 2012
  • 10. Jul. AdWords Express for small and local business and local customers. 2011 Done in 5 minute. Easy to set up. When click, address is shown in Google Map. Google Monday, March 19, 2012
  • 11. Business Model Bring in the money! Google Monday, March 19, 2012
  • 12. Google’s Business Model AdWords AdSense DoubleClick Google Monday, March 19, 2012
  • 13. Advertisers Google + Other sites Web Users Google Monday, March 19, 2012
  • 14. Google shirts Google Monday, March 19, 2012
  • 15. AdWords Google Monday, March 19, 2012
  • 16. Keyword relevance Quality Cost-per-click Historical CTR Bid auctions score Ad ranking Concept Google Monday, March 19, 2012
  • 17. AdSense Google Monday, March 19, 2012
  • 18. !"#$%&' !"#)&41&7'27' $(($)*+",*-' &;($1+)&'.$)' .$)'/&01,*&' 476&)51&)1' $/"&)1' 23*&)"456&' 476&)51,"8' (349$)%'.$)':$$83&' Concept Google Monday, March 19, 2012
  • 19. DoubleClick Google Monday, March 19, 2012
  • 20. DoubleClick Concept Ad placement Campaign analyzing Combining Google's infrastructure with DoubleClick's knowledge of agencies and publishers Google Monday, March 19, 2012
  • 21. Success Factors What makes us tick? Google Monday, March 19, 2012
  • 22. Success Factors Trinity Cycle of Factors. Google Monday, March 19, 2012
  • 23. People (L to R): Sergey Brin, Eric Schmidt, Larry Page Google Monday, March 19, 2012
  • 24. Innovative Business Model Google Monday, March 19, 2012
  • 25. Branding Google Monday, March 19, 2012
  • 26. Success Factors Trinity Cycle of Factors. Google Monday, March 19, 2012
  • 27. Challenges Obstacles to cross. Google Monday, March 19, 2012
  • 28. Is your name Google? Cos you have everything I’m searching for. Google Monday, March 19, 2012
  • 29. Brain Drain Google Google Monday, March 19, 2012
  • 30. Brain Drain Google Monday, March 19, 2012
  • 31. 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 Google Monday, March 19, 2012
  • 32. Market Penetration: China 44% of Asian Internet users 40% YOY Growth RMB $1.3 Trillion Google Monday, March 19, 2012
  • 33. Competitors’ Analysis Our rivals! Google Monday, March 19, 2012
  • 34. 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 Google Monday, March 19, 2012
  • 35. Top 3 Competitors (L to R): Yahoo, Facebook, Baidu Google Monday, March 19, 2012
  • 36. Global Online Advertising Market Share Google Monday, March 19, 2012
  • 37. 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 Google Monday, March 19, 2012
  • 38. Yahoo Dying? Google Total Dominance? Google Monday, March 19, 2012
  • 39. No! Yahoo! generates its own content Yahoo! allows advertisers to place premium ads at its homepage Yahoo! is “more localized” Google Monday, March 19, 2012
  • 40. Facebook 845 million monthly active users comparable to Google ; 184 million active users in Asia alone. Dominant player in social media Similar PPC model Google Monday, March 19, 2012
  • 41. Facebook Advantages Community-based platform with sophisticated demographics, geographic and interest targeting. Facebook & Bing social search Facebook Instant Personalization Google Monday, March 19, 2012
  • 42. Results: Undecided. Facebook ads exposure is also limited to social media platform Facebook “ad-fatigue” problem Google’s superior search engine Google Monday, March 19, 2012
  • 43. 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 Google Monday, March 19, 2012
  • 44. Thank you. Questions? Monday, March 19, 2012