• 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
• 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,
• 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 guys “
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
• Internet search engines (search-
• e.g Web Search, Image Search and
• New:Froogle, Google Groups and Google
Scholar (shopping sites ), Google Earth ,
Google Maps , Gmail
• Microsoft and Google :
MSN Search engine & Windows Live
• overlapping services :
• 1. Gmail vs. Hotmail
• 2 Microsoft's Windows Live Local vs
• 3. search (both online and local desktop
• The relationship between Google and
Mozilla Firefox ?
• 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)
• partnership with NASA (September 28,
• 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
• $900 million deal with News Corp.'s Fox
Interactive Media unit
• 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
• selling advertisements associated with
search keywords (2000)
• Number of hits users make upon ads
• $0.05 per click
• How to make money ?
• Ans: &
• How to expand the business?
• What are the business strategies to be
used by Google?
• Ans: ( & )
AdSenseTM & AdWordTM
Anyone who Anyone who want
wants to post ads to make money
on the web 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.
to earn more money…
Google puts relevant CPC (cost-per-click) and CPM
(cost per thousand impressions) ads through the same
the text or image ads
that will generate the
maximum revenue for
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…
How does works…
Create your Ads. Choose related
keywords . Your information get
stored in the Google database.
Your ads appears when Web
browsers search keywords related to
Browser CLICKS ads linked to
You pay Google according to the
number of the clicks on your ads.
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.
• 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 can
do is to identify which clicks are most likely
fraudulent and not charge the account of the
advertiser. But none of the measures is foolproof .
The threat to ads clients still exist.
Two sided market
• For ads client: •For web publisher:
Required a no cost, no obligation,
payable to no required budget
Google You can sign up
Can set the anytime from the
amount of the AdSense home page
Two sided market for Google Ad business
relevant Give web Pay
keywords space to according
to your display to clicks
Ad Client Web Publisher
Give subsidy to make one side come;
Save the transaction cost for web publisher.
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.
of days (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
• Version 3.0
• Codename: Minefield 3.0
• Release time: Nov 2007
• Version 4.0: coming soon
No threat from Firefox. ( Steve Vamos, Australia‟s
Microsoft managing director, Nov 11, 2004.)
"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)
In August 2006, Microsoft made an offer to
Mozilla to help integrate Firefox with the
forthcoming Windows Vista, which Mozilla
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
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
--Said Tristan Nitot, president of Mozilla Europe, during the FOSDEM 2005 conference.
World‟s Firefox Day
• 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
• The upcoming version of Firefox will include
protection against phishing scams, using
technology that might come from Google.
Google snaps up top Firefox
• 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,
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.”
Google Hires Second Firefox
• 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
• 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
• Google representatives have confirmed that the
campaign is supported by Google and that
payment are being made to those participating.
Why did Google do that?
Link to the course
• Positive effect
• Adam‟s card game
The Acquisition of
Press Release: Google To
Acquire YouTube for
$1.65 Billion in Stock
• 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
• Following the acquisition, YouTube will operate
independently to preserve its brand
• 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
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?
• 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
• Since Google has also started introducing
video adverts into AdSense adverts using the
same contextual system they use for the text
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
• 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
• 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
• It is expected Microsoft Adcenter and Yahoo
Publisher Network would soon face an uphill
• 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
• 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
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