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Google must be pretty important if
we‟re going to devote time in class to
study it… IT IS.




A recent search of WSJ articles showed:
• 1000 Google articles (max)              Larry Page   Sergey Brin

• 450 articles on IBM
• 990 on Toyota




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Google must be pretty important if
we‟re going to devote time in class to
study it… IT IS.




     Data from Yahoo Financial




                                         “Google's technology has emerged from a series
                                          of continuous improvements or what Japanese
                                              management consultants call Kaizen.”




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 THE BASICS

Google searches display two types of results:
• Organic Results
• Sponsored Links



                                    www.google.com




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 THE BASICS

Google searches display two types of results:
• Organic Results
• Sponsored Links



Google eschews ‘PAID INCLUSION’ or ‘PAID PLACEMENT’


                                            By the way, what is „paid inclusion‟?
                                            What is „paid placement‟?
                                            For that matter, what is „eschews‟?



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       THE BASICS




           Data from Search Engine Watch




Google has become the dominant search engine
                                               Data from Search Engine Watch




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HOW GOOGLE CHANGED SEARCH

   Early search engines competed primarily on the quantity of returns




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HOW GOOGLE CHANGED SEARCH


 Yahoo (1994; reborn 2002):
 Before Google, before AltaVista, there was Yahoo. Despite all the changes in
 the search space over the years, Yahoo has remained one of the most popular
 search destinations on the web. Yahoo stood out from its early competitors by
 using humans to catalog the web, a directory system.
 Crawler-based results from its partners only kicked in if there were no human-
 powered matches. That actually made Yahoo more relevant than competitors for
 many years, until the Google-era ushered in crawler-based results that were
 both comprehensive and highly relevant.




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HOW GOOGLE CHANGED SEARCH


Google based its search on a new search algorithm
• This resulted in highly relevant search results
• Grew primarily by word of mouth
• Started as a research project by Stanford PhD candidates Sergey
Brin and Larry Page “The Anatomy of a Large-Scale Hypertextual
Web Search Engine” 1997
• Incorporated “Page Rank” (a neat little play on words)




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About Page Rank

Why is understanding a bit about how page rank works important, from an e-
Commerce perspective?




           From “The Anatomy of a Large Scale Hypertextual Web
           Search Engine” by Sergey Brin and Lawrence Page




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About Page Rank

Why is understanding a bit about how page rank works important, from an e-
Commerce perspective?



       For one thing, if you are the top listed firm in Google‟s
       organic result listing, your going to have a very profitable
       Website.




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  About Page Rank

PageRank relies on the uniquely democratic nature of the web by using its vast
link structure as an indicator of an individual page's value.

In essence, Google interprets a link from page A to page B as a vote, by page A,
for page B. But, Google looks at more than the sheer volume of votes, or links a
page receives; it also analyzes the page that casts the vote. Votes cast by pages
that are themselves "important" weigh more heavily and help to make other
pages "important.“

Important, high-quality sites receive a higher PageRank, which Google
remembers each time it conducts a search. Of course, important pages mean
nothing to you if they don't match your query. So, Google combines PageRank
with sophisticated text-matching techniques to find pages that are both important
and relevant to your search. Google goes far beyond the number of times a term
appears on a page and examines all aspects of the page's content (and the content
of the pages linking to it) to determine if it's a good match for your query.

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About Page Rank

Pages that have many links from many other pages are worth looking at.
Pages with links from an influential site, like Yahoo are worth looking at.
Pages with links from other influential sites like universities are worth
looking at.


 Improving a sites „page rank‟ in
 Google (or any search engine) has
 become a huge Web „cottage industry‟




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About Page Rank

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?




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                                                 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 and     www.buyyourties.com
Google‟sadvertising network                      Paul Fredrick Men's Ties
•Reach people actively looking for information   Diverse collection of print & woven
                                                 luxury Italian silk neckwear.
about your products and services online.         www.paulfredrick.com
•Easily control costs - pay only when people
                                                 Mens Bow Ties
click on your ad                                 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




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Google AdWords



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




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Google AdWords

          Google AdWords are driven by key word
          auctions. For example, I am willing to bid up
          to $0.07 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.




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Google AdWords


        We will learn much more about
        AdWords, AdSense and key word
        auctions as we move into the Business
        Models section.




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posted:9/21/2011
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