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Google monetization

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					Introduction to e-Commerce
    Google/Competitors/SEM

      Dr. Michael D. Featherstone




                                    1
Google



         Monetized search by “Paid
         Placement’’




         Could have bought Google for One
         Million – but had a strategic reason
         for not wanting ‘better search results’




         Thought up a ‘better way’ to
         monetize search – IRONICALLY
         they were purchased by Yahoo!




                                                   2
Google




    But something beside page rank has to going on to make Google the
    powerhouse it has become…Arguably, the most important technology
    company in the USA (or the world for that matter).
    • How could Google turn this great search engine into a revenue producing
    process?
    •How could they monetize Search?
    •What would be their business model?



    Google rejected both Paid Inclusion and Pay for Placement
    search monetization models


                                                                                3
Google


   THE BASICS OF GOOGLE SEARCH MONETIZATION




         Google searches display two types of results:
         • Organic Results – The ‘normal’ search results
         • Sponsored Links – Results which advertisers have paid for




                                                                       4
Google

         Google searches display two types of results:
         • ORGANIC RESULTS – The ‘normal’ search results
         • SPONSORED LINKS – Results for which advertisers have paid




                                                                       5
Google

         Google searches display two types of results:
         • ORGANIC RESULTS – The ‘normal’ search results




                                                           6
Google

         Google searches display two types of results:
         •SPONSORED LINKS – Results for which advertisers have paid




                                                                      7
Google


                                               Sponsored Links
   Google AdWords                              Bow Ties - Free Shipping.
                                               100% Silk - Self & Pre-Tied.
                                               Buy 3 get 1 Free. Only $14.95 each.
    •Advertise to people searching on Google   www.buyyourties.com

    and Google’sadvertising network            Paul Fredrick Men's Ties
    •Reach people actively looking for         Diverse collection of print & woven
                                               luxury Italian silk neckwear.
    information about your products and        www.paulfredrick.com

    services online.                           Mens Bow Ties
                                               Brooks Brothers™ - Official Site.
                                               Shop Classic, Quality Fashions.
                                               www.BrooksBrothers.com

                                               Boys Bow Ties
                                               The clothes you love from J.Crew,
                                               now available for kids ages 2-10.
                                               www.JCrew.com

                                               Bow Ties in Silk & Cotton
                                               Self-tie, pre-tied and clip-on.
                                               Over 200 patterns. Different sizes.
                                               www.kottydesign.com




                                                                                     8
Google   Google AdWords




                          9
Google


                                               Sponsored Links
   Google AdWords                              Bow Ties - Free Shipping.
                                               100% Silk - Self & Pre-Tied.
                                               Buy 3 get 1 Free. Only $14.95 each.
    •Advertise to people searching on Google   www.buyyourties.com

    and Google’sadvertising network            Paul Fredrick Men's Ties
    •Reach people actively looking for         Diverse collection of print & woven
                                               luxury Italian silk neckwear.
    information about your products and        www.paulfredrick.com

    services online.                           Mens Bow Ties
                                               Brooks Brothers™ - Official Site.
    •Easily control costs - pay only when      Shop Classic, Quality Fashions.
                                               www.BrooksBrothers.com
    people click on your ad
                                               Boys Bow Ties
                                               The clothes you love from J.Crew,
                                               now available for kids ages 2-10.
                                               www.JCrew.com

                                               Bow Ties in Silk & Cotton
                                               Self-tie, pre-tied and clip-on.
                                               Over 200 patterns. Different sizes.
                                               www.kottydesign.com




                                                                                     10
Google



         How does this differ from TV or Radio
         or even magazine advertising?




                                                 11
Google



                                   How does this differ from TV or Radio
                                   or even magazine advertising?




 For one thing – It can transport me right to the website where I can make an
 immediate purchase
                                                                                12
Google


   How do you pay for SEM ads – How it all begins…

   Google AdWords are driven by key word auctions. For example, I am willing to bid up
   to $0.10 for the key words ‘bow ties’, ‘ties’, ‘bowties’, and ‘mens bow ties’. Others
   may bid more.




                                                                                           13
Google


     Google AdWords – How it all begins.

     Google AdWords are driven by key word auctions. For example, I am willing to
     bid up to $0.10 for the key words ‘bow ties’, ‘ties’, ‘bowties’, and ‘mens bow ties’




’These auctions are all “algorithmically driven”… that is to say they are all under
‘program control’.
                                                                                            14
Google


   Google AdWords – How it all begins.

   Google AdWords are driven by key word auctions. For example, I am willing to bid up
   to $0.10 for the key words ‘bow ties’, ‘ties’, ‘bowties’, and ‘mens bow ties’… at least
   until my daily advertising budget of $1.00 has been reached.




                                                                                             15
Google




         16
Google


   Google AdWords

              Google AdWords are a (in my view THE) key
              element in the resurgence of e-Commerce and
              the ‘new dot-com’ era



                            BECAUSE




                                                            17
Google




         We have only discovered
         the tip of Google’s iceberg
         of SEM revenue.




                                       18
This Concludes Today’s Presentation

         Thank you for your attention




                                        19

				
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posted:11/4/2012
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