By Michael Fuhrman

Mission StatementTo organize the world's information and make it

universally accessible and useful

HistoryFounded by Larry Page and Sergie Brin in 1996

Originally a research project at Stanford

Created new technology: Page Rank Website’s relevance based on the number of

pages and the importance of those pages, that linked back to the original site

Based out of a friend’s garage in Menlo Park

By 1999 the headquarters moved to Mountain View

Timeline1996: Started Google as a research project

1997: Offer to sell Google to George Bell for 1M and are rejected

1998: Incorporated as private company

2000: Created AdWords after Bill Gross of Idealab refused to sell them a similar idea

2004: IPO Market Cap of 23 billion

Current Valuation: 195 billion

Culture Focus on creating a fun work environment

Restaurants, gyms, Laundromats, etc. in order to keep employees focused on work

Casual dress code

“Googlers” encouraged to spend 20% of time on innovation

Ranked 1st by Fortune Magazine’s list for the best companies to work for

“You can make money without doing evil”

“You can be serious without a suit”

“Work should be challenging but the challenge should be fun”

Core CompetenciesFocus on pairing internet surfers with

advertisers and taking a cut $29 billion in 2010

Their matchmaking capabilities have been considered “the most successful business idea in history”

Earns more advertising revenue than any US media company

US Search Market Share

Understanding SearchPage Rank

Popularity Focus: no charge for web ranking in organic search results

Pages ranked by how many other pages link to them

Also about 200 other criteria to rank relevanceSearch Engine Optimization

Link Fraud: Creating bogus websites to link back to the primary site JC Penny: Organic results plummeted from 1st to

71st

Search Continued..Uses “Spiders”, “Web crawlers”, or “software

robots” to crawl web and uncover info

Search results provide copy of site’s contents

Runs over 1.4 million servers to index the web

AdWordsSearch Engine Marketing (SEM) – running and

optimizing search engine ad campaigns

Google AdWords Setup AdWords Account Specify ad campaign Bid on key words (actually pay 1 cent more than next

highest bid) Billed based on a pay per click (PPC) model

Results ranked based on max cost per click and quality score

Ranking = Max CPC x Quality Score Provides about 66% of Google’s total revenue

AdWords Continued..Quality Score

Click-through rate: The number clicks an add receives divided by the number of times it is shown

Relevance to search History of click performance for keyword Assessment of user experience with specific page

Most Expensive Words

AdSenseGives users programing code to host other

advertisements on their own sites

No discretion over what adds are shown

Users are paid 70 cents on the dollar by Google

30% of Google’s Revenues come from AdSense

Customer ProfilingCookies: Files stored on the computer which are

accessed by the web server or client computer to specifically tailor a visit IP Address: Location, employer, university, etc. Browser: Tech ads to Chrome users, etc. Past web history Items placed in shopping cart

Privacy PolicyOpt-out cookie

User data not sold to 3rd parties

Activities in Gmail, Docs and other services are not added to user profiles

Full disclosure of targeting

Privacy Issues2009 flaw granted access unauthorized access

to Google docs

2010 street view cars inadvertently collected personal data such as emails and passwords

2011 plugged a hole which could potentially allow hackers access to personal information from Android phones

Potential ProblemsLocating future growth models will be hard after

AdWords and AdSense mature

Inability to successfully enter the social media market Google Plus

Low switching costs for advertisers

Competition

CompetitionFacebook

Apple

Microsoft Bing

Amazon

Twitter

Yahoo

AcquisitionsMotorola

$12.5 billionBiggest deal to date 17,000 patents (protection against potential

iPhone suits)

Youtube 1.65 billion 2009 ad revenue: $240 million 2009 operating expenses: $711 million

$471 million shortfall

Current DevelopmentsGoogle Wallet

Google+

Google Apps Web-based software as service offerings Word processor Spreadsheets Presentation software Google Music

Questions 1. Who is Google’s biggest current competitor?

A. Apple B. Facebook C. Microsoft D. Yahoo

2. What has been the main contributor to the financial success of Google? A. Youtube B. AdSense C. AdWords D. Google Aps

3. What is link fraud? A. Creating bogus websites that link back to the primary site B. Creating faulty links to malware sources on a website C. Stealing links from other companies and putting them on your own website D. Disabling competitor’s links to make your own page-rank higher