1996 1998 2004 2/3 2/3 INTRO AND BACKGROUND Page and Brin, students at Stanford University in California, developed a search algorithm – at first known as "BackRub" 1998 Google Inc. was officially born. Andy Bechtolsheim wrote Larry and Sergey a check for $100,000, 2004 Initial public offering 2/3 of Google’s revenues come from ads served on its own sites, and majority of this revenue comes from search engine ads 2/3 of all US search engine queries take place on Google.

ORGANIZATION Google has already grown to earn more annual advertising dollars than any US media company. Google ad-serving properties like YouTube, Gmail, Google Finance, and Google Maps, and the firm controls about a third of all online advertising dollars.

Increased user time online There are 3 factors driving online ad growth trends: Increased user time online Targeting Improved measurement and accountability

WORK CULTURE Former CEO Eric Schmidt said the goal of all this is “to strip away everything that gets in our employees’ way.” The perks, culture, and sense of mission have allowed Google to assemble one of the most impressive rosters of technical talent anywhere. True Flexibility The Freedom To Be Creative A Fun Environment The People And Their Expertise Dog-Friendly Workplace Trust A Dedicated Focus On Employee Happiness

ALPHABET Google has evolved into Alphabet, a diverse holding company investing in a wide-ranging array of potentially high-impact endeavors. Google is hoping to be the first (alpha) big player to double-down (bet) on risky but promising new markets. Founded in October 2, 2015, California

STRATEGY Google’s CEO, Sundar Pichai, has said the firm has moved from “mobile first” to “AI first”. Google bought 11 robotics firms Roughly 200 acquisitions. More than Apple, Microsoft, Amazon, Facebook, and Yahoo! E.g. Google acquired (Internet of Things) IoT platform Xively from software company LogMeIn for $50 million in 2017. E.g. Deep Dive https://www.youtube.com/watch?v=gn4nRCC9TwQ

STRATEGY Android is now the world’s most popular mobile operating system by a long shot— 80 % share of the smartphone OS market. The Internet’s second largest search engine. YouTube’s primetime audience is bigger than the 10 biggest US TV shows, combined. Google’s payment product uses NFC Near Field Communication—a short-range, wireless communication standard. Social Network Self-Driving car prototypes. Google’s “apps” are mostly Web-based software-as-a-service offerings.

Not always a Winner… While Google is a risk-taker, it’s important to recognize that the firm isn’t always a winner. E.g. E-mail replacement tool Google Wave Social network Google Buzz Acquisition of Motorola for $12.5 billion in 2011 (sold for $2.91 billion two years later)

SEARCH PageRank: Google does not accept money for placement of links in organic search results. Instead, PageRank results are a kind of popularity contest. Search Engine Optimization (SEO): The process of improving a page’s organic search results Google Analytics: Collects statistics on its website or app’s traffic, traffic sources, user behavior on site, sales and advertising success, social media analysis, and more.

SEARCH Link Farming: Creating a series of bogus websites, all linking back to the pages they’re trying to promote. Search Engine Marketing (SEM): The practice of running and optimizing search engine ad campaigns. Keyword advertising: Advertisements that are targeted based on a user’s query. Pay-per-click (PPC): Advertisers don’t spend a penny unless someone actually clicks on their ad. 30 Cents to $1

SEARCH TOP Google has developed a precise ad ranking formula that rewards top performing ads: The maximum Cost Per Click (CPC) that an advertiser is willing to pay (sometimes referred to as an ad’s bid value) The advertisement’s quality score The expected impact of extensions ad formats   Ad Rank = f (Maximum CPC, Quality Score, expected impact of extensions and formats)

SEARCH 20 % of Google’s revenues come from running ads on websites and apps that the firm doesn’t even own" 7 Cents for every AdSense dollar that Google collects pays Google to external websites

CHALLENGES Share of mobile searches 2012 82.8 % 2014 65.7 % 2012 82.8 % 2014 65.7 % Google has offered additional features to give users a reason to stick with its search and map products. (Hotels, airfare, food, etc) Priceline spends over $1.5 billion advertising with Google each year. Expedia spends over $1 billion. Just these two firms account for about a 5 % of Google revenue. Consequences resulting from the misuse of customer tracking and profiling technologies include user resistance and legislation.

WHAT’S NEXT? The firm’s twin engines of revenue growth—ads served on search and through its ad networks—will inevitably mature. Without substantial year-on-year growth, the stock price doesn’t move. Google (GOOG) versus Microsoft (MSFT)

Question 1 What is Keyword advertising? A. Advertisements that are targeted based on a user’s query. B. The practice of running and optimizing search engine ad campaigns. C. Creating a series of bogus websites, all linking back to the pages they’re trying to promote. D. All of the above

Question 1 What is Keyword advertising? A. Advertisements that are targeted based on a user’s query. B. The practice of running and optimizing search engine ad campaigns. C. Creating a series of bogus websites, all linking back to the pages they’re trying to promote. D. All of the above

Question 2 Who is Google’s CEO? A. Larry Page B. Sergey Brin C. Jeff Bezos D. Sundar Pichai

Question 2 Who is Google’s CEO? A. Larry Page B. Sergey Brin C. Jeff Bezos D. Sundar Pichai

Question 3 Is YouTube the Internet’s second largest search engine? A. True B. False

Question 3 Is YouTube the Internet’s second largest search engine? A. True B. False

Thank you.