google finance itfm final

8/11/2019 Google Finance ITFM Final

1/15

IT For Managers

Term Paper

FINANCE

Guide: Ms. Teena Bagga

Submitted By:

Madhur Arora C-36

Bhanu Chopra C-53


2/15

TABLE OF CONTENTS

Certifcate.. (3)

Abtract... (!)

"#$%&'C$"..

(5)

itory o* +oo,e . (5)+oo,e Buine Mode ..

......................................... (6)

o/ +oo,e Ma0e %e1enue2 $he Bi, uetion.

(4)

A %e1outionary Buine Mode: e it i.

()

&b7ecti1e o* the tudy ...........................

(89)Methodoo,y ed .

(89)Anayi 'icuion

(89)Concuion ....

(83)

%;


3/15

CERTIFICATE

&n the bai o* decaration ubmitted by Madhur Arora and Bhanu Chopra =

tudent o* Amity Buine Schoo = " hereby certi*y that the term papertited >+oo,e Ad: o/ +oo,e +enerate %e1enue ? /hich i ubmitted to

'epartment o* Mater o* Buine Adminitration= ABS = Amity ni1erity

ttar @radeh= #oida= in partia *ufment o* the reuirement *or the a/ard

o* the de,ree in MBA = i an ori,ina contribution /ith eitin, 0no/ed,e

and *aith*u record o* /or0 carried out by them under my ,uidance and

uper1iion.

$o the bet o* my 0no/ed,e thi /or0 ha not been ubmitted in part or *u

*or any 'e,ree or 'ipoma to thi ni1erity or ee/here.

@ace: #oida

'ate

Ms. Teena Bagga

(Aitant @ro*eor)

"n*ormation

$echnoo,y

(A.B.S)

Amity ni1erity ttar @radeh= #oida


4/15

+oo,e Ad: o/ +oo,e +enerate

%e1enue

Madhur Arora

Ami! Business S"hoo#

Bhanu Chopra

Ami! Business S"hoo#

$. A%sra"

+oo,e Adord i +oo,eD main ad1ertiin, product and main ource o*

re1enue. +oo,eD tota ad1ertiin, re1enue /ereS'E!F.5 biion in

F98F. Adord oGer pay-per-cic0= that i= cot-per-cic0 (C@C) ad1ertiin,=

cot-per-thouand-impreion or cot-per-mie (C@M) ad1ertiin,= and ite-

tar,eted ad1ertiin, *or tet= banner= and rich-media ad. $he Adord

pro,ram incude oca= nationa= and internationa ditribution. +oo,eD tet

ad1ertiement are hort= conitin, o* one headine o* F5 character and

t/o additiona tet ine o* 35 character each. "ma,e ad can be one o*

e1era diGerent "nteracti1e Ad1ertiin, Bureau("AB) tandard iHe.

Sae and upport *or +oo,eD Adord di1iion in the nited State i

baed in Mountain Iie/= Cai*ornia= /ith ma7or econdary oJce in Ann

Arbor= Michi,an= the companyD econd ar,et oJce i ocated in #e/ or0.

$he third-ar,et S *aciity i in Mountain Iie/=
http://en.wikipedia.org/wiki/Googlehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Pay-per-clickhttp://en.wikipedia.org/wiki/Interactive_Advertising_Bureauhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Pay-per-clickhttp://en.wikipedia.org/wiki/Interactive_Advertising_Bureauhttp://en.wikipedia.org/wiki/Google


5/15

Cai*ornia= headuarter. ;n,ineerin, *or +oo,e Adord i baed in

Mountain Iie/= Cai*ornia.

&e! 'ords: Goog#e( Ads( Re)enue( Ad)erisemens( Business

Sraeg!

*. Inrodu"ion

Goog#e Ad'ordsha e1o1ed into +oo,eD main ad1ertiin, product and

main ource o* re1enue. +oo,eD tota ad1ertiin, re1enue /ere S'E!F.5

biion in F98F.Adord oGer pay-per-cic0= that i= cot-per-cic0 (C@C)

ad1ertiin,= cot-per-thouand-impreion or cot-per-mie (C@M)

ad1ertiin,= and ite-tar,eted ad1ertiin, *or tet= banner= and rich-media

ad. $he Adord pro,ram incude oca= nationa= and internationa

ditribution. +oo,eD tet ad1ertiement are hort= conitin, o* one

headine o* F5 character and t/o additiona tet ine o* 35 character

each. "ma,e ad can be one o* e1era diGerent "nteracti1e Ad1ertiin,

Bureau("AB) tandard iHe.

Sae and upport *or +oo,eD Adord di1iion in the nited State i

baed in Mountain Iie/= Cai*ornia= /ith ma7or econdary oJce in Ann

Arbor.

+. ,isor! o- Goog#e

+oo,e= the eadin, earch en,ine /ord/ide= /a *ounded in 84 by

Stan*ord ni1erity ,raduate tudent Karry @a,e and Ser,ei Brin.

hie at Stan*ord in 86= @a,e and Brin be,an de1eopin, a earch en,ine

they e1entuay entited Bac0%ub. $hi earch en,ine /a dei,ned to oo0

at the connectin, in0 bet/een /eb pa,e in order to determine a iteD

authority. "n 84= @a,e and Brin et up their frt data center in @a,eD

dorm.

+oo,e= "nc. /a etabihed on September L= 84 in a *riendD ,ara,e in

Meno @ar0= Cai*ornia. @a,e and Brin hired their frt empoyee= Crai,

Si1ertein= /ho /a ater to become +oo,eD 'irector o* $echnoo,y.
http://en.wikipedia.org/wiki/Googlehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Pay-per-clickhttp://en.wikipedia.org/wiki/Interactive_Advertising_Bureauhttp://en.wikipedia.org/wiki/Interactive_Advertising_Bureauhttp://en.wikipedia.org/wiki/Mountain_View,_Californiahttp://en.wikipedia.org/wiki/Googlehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Pay-per-clickhttp://en.wikipedia.org/wiki/Interactive_Advertising_Bureauhttp://en.wikipedia.org/wiki/Interactive_Advertising_Bureauhttp://en.wikipedia.org/wiki/Mountain_View,_California


6/15

+oo,e achie1ed praie and pubicity a ne/ pread rapidy throu,h onine

and oine media a /e a their receipt o* numerou a/ard and

recommendation. $heir audience continued to ,ro/ aon, /ith their

reputation *or eGecti1ene= ree1ance= peed and reiabiity.

"n F999= +oo,e repaced ahooD o/n interna earch en,ine a the pro1ider

o* uppementary earch reut on ahoo. #o/= /ith more than 59N hare

o* the tota earch mar0et= +oo,e pro1ide earch reut *or numerou

earch en,ine on the /eb.

. Goog#e/s Business Mode#

+oo,e i amon, the eadin, $echnoo,y companie in the ord. +oo,e i

mot popuar *or it Search en,ine= /hich hep "nternet uer ,et ue*u

reut in repone to their uerie. +oo,e maintain 1at inde o*

/ebite and hep uer earch diGerent type o* content uch a $et=

"ma,e= Audio= Iideo= Bo,= #e/= and Map throu,h it product. +mai i

another 1ery popuar product o* +oo,e= *or *ree emai er1ice to the

uer. +oo,e pro1ide ocia net/or0in, er1ice to it uer throu,h it

+oo,eO product.

$he main product i it hu,e poo o* uer and eteni1e data about ho/

they beha1e onine. $hi data i ued to match companie /ith potentia

cutomer= er1in, up ad that uer are more i0ey to /ant to cic0.


7/15

+oo,e pro1ide it er1ice to the "nternet uer *or *ree. +oo,e ma0e

the re1enue *rom Ad1ertier /ho are intereted in reachin, out to the

onine uer. +oo,e hep them create tet-baed Ad throu,h +oo,e

Ad/ord P a e*-er1e auction-baed ad1ertiin, pro,ram. $hee ad

appear net to the earch reut. Mot ad1ertier pay +oo,e on a Cot

per Cic0 (C@C) bai= /hich mean ad1ertier pay /hen uer cic0 their

Ad. +oo,e hep ad1ertier etend their Ad campai,n to the +oo,e

#et/or0 member /ebite throu,h it Adene pro,ram. +oo,e #et/or0

member ,et a hare o* Ad re1enue in return. +oo,e pro1ide 'ipay

Ad1ertiin, er1ice throu,h 'oubeCic0 ad1ertiin, technoo,y. 'ipay

ad1ertiin, comprie o* 1ideo= tet= ima,e= and other interacti1e ad.

'ipay ad appear on outube= +oo,e


8/15

Chrome bro/er *or /eb bro/in,. +oo,e i /or0in, /ith e1era &;M

(&ri,ina ;uipment Manu*acturer) to brin, computer runnin, Chrome

&S. +oo,e er1e the ;nterprie mar0et throu,h hoted /eb-baed

appication caed +oo,e App. +oo,e App incude +mai= +oo,e 'oc=

+oo,e Caendar= and +oo,e Site. @eope need a bro/er and an "nternet

connection to ue the +oo,e App.

+oo,e ha de1eoped a +oba Sae and Support in*ratructure /ith

peciaiHed team acro diGerent indutrie. +oo,e muti-product ae

*orce e campai,n that incude Search= 'ipay= and Mobie ad1ertiin,.

+oo,e hep mot o* it cutomer /ith a e*-er1e approach and trie to

brin, automation /here poibe. +oo,e ha buit a ,oba upport team to

hep ad1ertier and +oo,e #et/or0 member to ,et the maimum 1aue

out o* it oGerin,. +oo,e ae team *ocu on buidin, reationhip /ith

ar,et ad1ertier and eadin, "nternet companie.

+oo,e buine ha ! 0ey cot eement: %'= 'ata center operation=

$raJc Acuiition= and Sae Mar0etin,. +oo,e in1et hea1iy into %'

to create ne/ product and impro1e eitin, product. +oo,e i etimated

to ha1e o1er 8 miion er1er in data center around the /ord that proce

neary 8 biion earch reuet e1ery day.

+oo,e ha in1eted hea1iy in thee data centre and mana,in, their

operation continue to be a 0ey cot eement. $raJc acuiition cot

comprie o* money paid to the +oo,e #et/or0 /ebite under the

AdSene pro,ram and to the ditribution partner /ho ditribute +oo,e

$oobar and other product or dri1e traJc to the +oo,e /ebite. +oo,e

Sae Mar0etin, cot incude the cot o* mana,in, ,oba ae and

upport team a /e a ad1ertiin, and promotiona ependiture.

+oo,e ,enerate o1er 6N o* it re1enue *rom ad1ertiin, and thi ha

remained true *or at e1era year. $hou,h +oo,e ha e1o1ed it Search

oGerin,= ,ot into Mobie pace= tryin, to ,et into &peratin, ytem= andha buid oGerin, *or the ;nterprie= any o* them ha not yet reuted into

ma7or re1enue tream. Appe= on the other hand= earned L9N o* the

re1enue *rom product (i@hone and i@ad) that didnt eited 5 year a,o.


9/15

Can +oo,e do that2 Can +oo,e inno1ate it Buine Mode o that 59N o*

re1enue in F98L /i not come *rom ad1ertiin,= but *rom +oo,e ne/ 1aue

propoition in net 5 year2 "n your opinion= /hat can be the ne/ re1enue

tream *or +oo,e2

0. ,o1 Goog#e Ma2es Re)enue3 The Big 4uesion

"n a /ord= Adord. "n ome repect +oo,e i eentiay the /ordD

ar,et bu heter= deri1in, 6N o* it re1enue *rom ad. $hatD /hat

eparated a nacent eary-F999 +oo,e= 0no/n primariy a a earch

en,ine= *rom it competitor. +oo,eD *ounder reaiHed that i* peope /ere

,oin, to 1iit the ite and enter a term in the earch bo= they /oudnDt be

andin, on the ubeuent pa,e by accident. $hu theyDd be moti1ated to

buy a product *rom any ad1ertier harp enou,h to pace an ad there.

Let us understand how we help Google make profts:

Say you run a ma company - a ba0ery ocated in South ;tenion @art 8=

Qandy= *or intance. "tD a*e to ay that peope /ho /oud +oo,e the

/ord RSouth ;R O Rba0eryR /oud i0ey patroniHe your buine. Buy an

ad on a pa,e thatDd be 1iited ony by peope /ho are oo0in, *or a $ope0a

ba0ery= and youDre tar,etin, about a accuratey a itD poibe to tar,et a

potentia cientee.


10/15

5. A Re)o#uionar! Business Mode#: 6es i is

$he traditiona ad1ertiin, media - radio= tee1iion= ne/paper et a. -

/ere and are incapabe o* dra/in, a ditinction bet/een patron oo0in, to

,enerate traJc= and thoe oo0in, to ma0e the pubic a/are o* their brand.

A tatic ,enera-purpoe ad canDt te /hoD acti1ey in the mar0et *or

/hate1er product itD ein,= and /hoD 7ut pai1ey ittin, there. $o

accommodate the atter - peope /ho arenDt ready to buy= but /ho mi,ht

other/ie 0eep your competitor top-o*-mind - +oo,e et you pay per

impreion. $hat mean that the moment a +oo,e uer accee a pa,e on

/hich an ad appear= +oo,e char,e the company that paced the ad.

hich ao iteray doenDt cot a dime= but thatD a *unction o* the ma

amount in1o1ed. A typica uch a,reement ao/ e1era 1ie/ o* your

ad *or e than a penny.

Adord i ony one pron, o* +oo,eD dua re1enue trate,y. A reated and

imiary named but diGerent er1ice i AdSene.

%ather than ha1in, ad appear on earch pa,e acceed upon 1iitin,

+oo,e.com= AdSene ao/ o/ner o* other /ebite to 7oin +oo,eD

net/or0 and run +oo,e-branded ad. +oo,eD a,orithm do a the /or0=

too. Si,n up *or the net/or0 and your /ebite de1oted to Bi0ram yo,a

mi,ht end up runnin, ad *or mat= prop= etc. Companie that pay +oo,e

to run thoe ad indirecty beneft ite o/ner /ho ue AdSene.

Accordin, to +oo,eD income tatement= about L9N o* it ad1ertiin,

re1enue come *rom Adord= the ret *rom AdSene.

+oo,e re1enue i baed on ad1ertiin,= o it need more and more pace

to ho/ it ad to increae it re1enue. So= epandin, it reach throu,h it

AdSene contetua ad net/or0 ma0e ene. So doe it acuiition o*

'oubeCic0. Both o* thee mo1e ao/ +oo,e to pace ad on eb

propertie it doe not o/n.


11/15

Simiary= +oo,e ha been conitenty acuirin, propertie that er1e a

1enue *or it ad= uch a Bo,,er and ou$ube. +oo,e ha ao pioneered

ne/ oGerin, that attract audience *or it ad= uch a +mai.

So /hat doe it mean2

$hi mean L-6 N o* re1enue i ,enerated throu,h ad1ertiement.

7. O%8e"i)es o- he sud!

8. $o tudy the re1enue ,eneration proce o* +oo,e *rom

Ad1ertiement.F.$o tudy and undertand the +oo,e mode o* buine and trate,y.

9. Mehodo#og! sed: Se"ondar! ;aa

Baic tudy o* pat data *rom reiabe ource o* internet.

@at fnancia data o* +oo,e.

+oo,e baance heet *or pat 3 year.

$heir buine mode.

$heir re1enue ,eneration mode.


12/15

AnayHin, the roe o* ad1ertiement in +oo,e buine and

re1enue.


13/15


14/15

$he mot i0ey probem +oo,e /i ha1e to *ace do/n i a bac0ah baed

on pri1acy concern. +oo,e i /e a/are o* thi dan,er= o it remain to be

een i* they can e1ade it.

"n the end= +oo,e ha a on, /ay to ,o. $he ead +oo,e ha in the

buine i ome/hat impoibe *or any other /eb baed company to e1en

thin0 o* it.

+oo,e doe not ha1e threat o* ur1i1a or a threat o* competition but it ha

a competition to ite* and to the ima,e it ha et.

+oo,e need to be conitent and ao ,ro/ in the manner it ha been

doin, o *ar.

"t houd epand and achie1e it ,oa o* bein, a ynonym *or "nternet


15/15

$$. REFERENCES

http:UU///./ordtream.comUarticeU,oo,e-earnin,

http:UUbmimatter.comUF98FU93UFUundertandin,-,oo,e-

buine-modeU

http:UUen./i0ipedia.or,U/i0iUCriticimVo*V+oo,e

http:UUen./i0ipedia.or,U/i0iUAdord

http:UU///.channe!.comUne/Ui*-,oo,e-i-*ree-ho/-doe-it-

ma0e-o-much-money

http:UUbmimatter.comUta,U,oo,e-buine-modeU

http:UU///.in1etopedia.comUtoc0-anayiUF98FU/hat-

doe-,oo,e-actuay-ma0e-money-*rom-,oo,88F8.ap

http:UU,r4in1etmentidea.bo,pot.inUF98FU88Uho/-doe-

,oo,e-ma0e-it-money.htm
http://www.wordstream.com/articles/google-earningshttp://bmimatters.com/2012/03/29/understanding-google-business-model/http://bmimatters.com/2012/03/29/understanding-google-business-model/http://en.wikipedia.org/wiki/Criticism_of_Googlehttp://en.wikipedia.org/wiki/AdWordshttp://www.channel4.com/news/if-google-is-free-how-does-it-make-so-much-moneyhttp://www.channel4.com/news/if-google-is-free-how-does-it-make-so-much-moneyhttp://bmimatters.com/tag/google-business-model/http://www.investopedia.com/stock-analysis/2012/what-does-google-actually-make-money-from-goog1121.aspxhttp://www.investopedia.com/stock-analysis/2012/what-does-google-actually-make-money-from-goog1121.aspxhttp://gr8investmentideas.blogspot.in/2012/11/how-does-google-make-its-money.htmlhttp://gr8investmentideas.blogspot.in/2012/11/how-does-google-make-its-money.htmlhttp://www.wordstream.com/articles/google-earningshttp://bmimatters.com/2012/03/29/understanding-google-business-model/http://bmimatters.com/2012/03/29/understanding-google-business-model/http://en.wikipedia.org/wiki/Criticism_of_Googlehttp://en.wikipedia.org/wiki/AdWordshttp://www.channel4.com/news/if-google-is-free-how-does-it-make-so-much-moneyhttp://www.channel4.com/news/if-google-is-free-how-does-it-make-so-much-moneyhttp://bmimatters.com/tag/google-business-model/http://www.investopedia.com/stock-analysis/2012/what-does-google-actually-make-money-from-goog1121.aspxhttp://www.investopedia.com/stock-analysis/2012/what-does-google-actually-make-money-from-goog1121.aspxhttp://gr8investmentideas.blogspot.in/2012/11/how-does-google-make-its-money.htmlhttp://gr8investmentideas.blogspot.in/2012/11/how-does-google-make-its-money.html

google finance itfm final

Documents