Outline

• 1. History of Google

• 2 Growth of Google

• 3. Competition

• 4. Acquistions and partnerships

• 5. Purpose of Acquistions

"Googol" = Google ?

• 1 followed by 100 zeros

• "Mathematics and the Imagination"

• company's mission immense amount of information

• Back before Google? Aye, there's the Rub

• Biggest challenges: retrieving relevant information from a massive set of data

Revolution of Google

• one of computing's biggest challenges: retrieving relevant information from a massive set of data. 

• BackRub = its unique ability to analyze the "back links" pointing to a given website

one year later, earning BackRub a growing reputation (Among Campus)

History of Google

• Larry Page and Sergey Brin

• Ph.D. students at Stanford University, California

• As a research project (Jan, 1996)

• the domain google.stanford.edu. (September 14, 1997 )

• Google Inc. (September 7, 1998 ) its door in Menlo Park

The first version of Google(1998)

“Google guys “

-----Larry Page, Eric Schmidt, Sergey Blin.

Movement of Google

• Answering 10,000 search queries (1998)500,000 queries per day (1999)

100 million search queries a day Today?• According to the Nielsen cabinet :• search engine ‘s market share:• 1 Google (54%) • 2. Yahoo! (23%) • 3. MSN (13%) simple, uncluttered, clean design

Services

• Internet search engines (search-oriented) :

• e.g Web Search, Image Search and Google News

• New:Froogle, Google Groups and Google Scholar (shopping sites ), Google Earth , Google Maps , Gmail

Competition

• Microsoft and Google :MSN Search engine & Windows Live search

• overlapping services :• 1. Gmail vs. Hotmail • 2 Microsoft's Windows Live Local vs

Google Maps • 3. search (both online and local desktop

searching)

Competition

• The relationship between Google and Mozilla Firefox ?

&

Acquistions

• 1. Buy YouTube for $1.65 billion (October 9, 2006 )

• Not merge with Google Video

• 2. Sony BMG Music Entertainment and the Warner Music Group deliver music videos to the site

• 3. purchased JotSpot (October 31st 2006)

Partnerships

• partnership with NASA (September 28, 2005, )

• a partnership with Sun Microsystems (October 2006 )

• Time Warner's AOL unit and Google

1) AOL on video search

2) AOL's premium-video service within Google Video

Partnerships

• $900 million deal with News Corp.'s Fox Interactive Media unit

New Markets

• Radio and print publications

• E.g dMarc (January 17, 2006 )

• allows companies to advertise on the radio

• Other new market:

• selling advertisements from its advertisers in offline newspapers and magazines, e.g Chicago Sun-Times

New Markets

• selling advertisements associated with search keywords (2000)

• Number of hits users make upon ads

• Keywords

• $0.05 per click

• How to make money ?

• Ans: &

• How to expand the business?

Ans: &

• What are the business strategies to be used by Google?

• Ans: ( & )

Ads

AdSenseTM & AdWordTM

Anyone who wants to post ads

on the web

Anyone who want to make money on ads on web

An easy way for web publishers to display Google

ads on their website AdSense delivers relevant text and image ads that are precisely targeted to your site and your site content.

Use to earn more money…Google puts relevant CPC (cost-per-click) and CPM

(cost per thousand impressions) ads through the same Vickrey auction.

AdSense automatically displays the text or image ads that will generate the maximum revenue for your page.

Advertise your business on Google

No matter what your budget, you can display your ads on Google and our advertising network. Pay only if people click your ads…

Create your Ads. Choose related keywords . Your information get stored in the Google database.

Your ads appears when Web browsers search keywords related to your business.

Browser CLICKS ads linked to your website.

You pay Google according to the number of the clicks on your ads.

How does works…

Problems of PPC (Pay Per Click)

• Ad clients pay due to the number of clicks on their links.

•Click fraud appears

• In 2005, Google won a lawsuit against a Texas company called Auction Experts (acting as a publisher), which Google accused of paying people to click on ads that appeared on Auction Experts' site, costing advertisers $50,000.

Click fraud !• In 2004, a California man created a

software program that he claimed could let spammers defraud Google out of millions of dollars in fraudulent clicks. He was arrested while trying to blackmail Google for $150,000 to hand over the program.

Solution?

• Proving click fraud can be very difficult it is hard to know who is behind a computer and what their intentions are.

• Often the best an advertising network cando is to identify which clicks are most likelyfraudulent and not charge the account of theadvertiser. But none of the measures is foolproof .

The threat to ads clients still exist.

Two sided market for

• For ads client:

Required a bank account payable to Google

Can set the amount of the budget

•For web publisher:

no cost, no obligation,

no required budget

You can sign up anytime from the AdSense home page

Ads

Ad Client Web Publisher

Ads on Web page

Pay according to clicks

Link relevant keywords to your ads

Give web space to display related ads

Pay according to clicks

Match making

Two sided market for Google Ad business

AdSense:Give subsidy to make one side come;

Save the transaction cost for web publisher.

AdWords:Gain more profit from the other side;

Auction: get highest PPC price from Ad Client;

Ad clients take the risk of CLICK FRAUD.

As Eric Schmidt ,the CEO of Google, said :

“AdWords is Google’s flagship advertising product and main source of revenue.”

&

• With over 170 million downloads, Mozilla's Internet browser Firefox is the second-most popular browser in the world - and growing.

Introduction

Performance

DateNumberof days

Downloads(millions)

10-Nov-04 1 1

15-Feb-05 99 25

29-Apr-05 171 50

26-Jul-05 259 75

19-Oct-05 344 100

3-Mar-06 479 150

31-Jul-06 629 200

11-Nov-06 732 250

Market share

Future development

• Version 3.0

• Codename: Minefield 3.0

• Release time: Nov 2007

• Version 4.0: coming soon

"I played around with it (Firefox) a bit, but it's just another browser, and IE is better…So much software gets downloaded all the time, but do people actually use it?" (Bill Gates, May 9, 2005)

No threat from Firefox. ( Steve Vamos, Australia’s Microsoft managing director, Nov 11, 2004.)

Upon the release of Firefox 2.0, the Internet Explorer 7 development team shipped a cake to Mozilla as a sign of appreciation on Nov 26th, 2006.

In August 2006, Microsoft made an offer to Mozilla to help integrate Firefox with the forthcoming Windows Vista, which Mozilla accepted.

I know companies that are deploying Firefox or Thunderbird, but they aren't talking about it as they don't want to see an increase in their [Microsoft] Office license price.”

--Said Tristan Nitot, president of Mozilla Europe, during the FOSDEM 2005 conference.

World’s Firefox Day

• www.worldfirefoxday.com

and

• Since March 30, 2005, the Google search engine has utilized the link prefetching feature of Firefox for faster searching.

• Google, Inc. also recommends Firefox as the browser for its

• Google has released four Extensions for Firefox, further affirming the company's interest in Firefox.

• The upcoming version of Firefox will include protection against phishing scams, using technology that might come from Google.

Google snaps up top Firefox programmer

• Google has hired the leading programmer of the Firefox Web browser, the newest step in the search engine powerhouse's encroachment on Microsoft's turf.

--By Stephen Shankland, Staff Writer, CNETNews.com

From Ben Goodger’s blog

• “As of January 10, 2005, my source of income changed from the Mozilla Foundation to Google, Inc. of Mountain View, California. My role with Firefox and the Mozilla project will remain largely unchanged, I will continue doing much the same work as I have described above.”

– http://weblogs.mozillazine.org/ben/archives/007366.html

Google Hires Second Firefox Coder

• Me and the big "G"

• “Following on the heels of Ben's announcement yesterday, I thought I'd post that I have joined Google as well. Like Ben, I will still be very much involved with the Mozilla project and community :-)”

• Posted by Darin at January 25, 2005 02:35 PM

• Mozilla confirms it is taking in millions of dollars from the Firefox browser in March 2006, primarily through Google's search box, but declined to give an exact figure.

• On April 26th, Google ran an ad for Firefox on its popular homepage, giving the open-source Web browser a big marketing boost over their joint rival Microsoft.

• The one-line text ad read: “Firefox with Google Toolbar: tabbed browsing, safer surfing.”

“Thanks to the marketing team at Google for the support.”

(Paul Kim, director of product marketing for Mozilla said in his blog.)

• If you are a website manager, Google is paying $1 for each new Firefox user you refer.

• The campaign, called Explorer Destroyer, takes advantage of a new program by Google to pay users US$1 for each referral to Firefox made through Google Toolbar, according to the group’s website.

• Google representatives have confirmed that the campaign is supported by Google and that payment are being made to those participating.

• http://www.explorerdestroyer.com• http://www.killbillsbrowser.com

Why did Google do that?

Google Microsoft

Firefox IE

Link to the course

• Positive effect

• Adam’s card game

The Acquisition of YouTube

• On October 9, 2006 - Google Inc. announced that it has agreed to acquire YouTube, the consumer media company for people to watch and share original videos through a Web experience, for $1.65 billion in a stock-for-stock transaction.

• Following the acquisition, YouTube will operate independently to preserve its brand

Press Release: Google To Acquire YouTube for $1.65 Billion in Stock

About YouTube• Founded in February 2005• Founders Steve Chen and Chad Hurley got

frustrated when they were trying to share video with friends on the Internet and found the process too complicated

• They set up www.YouTube.com which allows people to easily upload and share video clips

• The site's fare now ranges from the very silly -- teenagers lip-syncing to pop music -- to the deadly serious -- soldiers' videos of the war in Iraq.

Success of YouTube • YouTube is the easiest site to play videos,

with more obscure videos, more interesting videos and better interface, faster uploads than other competitors

• You don't have to mess about with video standards. Just upload your film and the website does all the heavy lifting.

• Plus you can rate films, recommend them to friends and comment on them, which creates social networking effectively

• Google Video was still a widely-used product. • Will it get tossed in favor of YouTube?• Or will both video systems continue to

operate on parallel tracks?• Uncertain• But we know that Google seems to be

following the Microsoft model of competition : if you can't beat them, buy them !

Benefits to Google

1) Video Adverts in YouTube

• Since Google has also started introducing video adverts into AdSense adverts using the same contextual system they use for the text based adverts. Google could possibly integrate these adverts to be shown at the end of a YouTube video. They can also make sure the adverts match the theme of the video.

• Given that advertisers are becoming increasingly annoyed with ad skipping Personal Video Recordings and are looking for other more effective ways to advertise, YouTube could become a popular platform for advertisers

• The combined power of Google and YouTube could become a magnet for Internet advertising revenue. Such video-based revenue is expected to hit $15 billion this year and $25 billion by 2010

2) Selling Video for Download

• Google already sells premium video on video.google.com and it could attempt to do the same on YouTube or integrate the premium Google Videos with YouTube.

• The new GooTube conglomeration has the potential to offer independent content creators the ability to reach a wide audience, and even make money from potential direct sales.

3) Monopolize the Market

• In advertising market:

• By taking out YouTube Google will have locked up the three biggest non-Adsense players on the market: AOL, MySpace, and YouTube

• It is expected Microsoft Adcenter and Yahoo Publisher Network would soon face an uphill battle

• In video sharing market• Now Google has the massive Google Video

library and an even bigger YouTube video library. With such a huge video library and more video viewers than anyone, Google and YouTube could monopolize the video sharing market

• Google's politics is to provide the best online video sharing services at low price so that the worse and more expensive one would die soon

Then once the online video sharing services become even commercial and popular. Google, the monopoly, can get tremendous profit when there will be nothing for viewers to choose from. So, when will Google turn into a Microsoft-like giant?