1 Dr. Michael D. Featherstone Introduction to e-Commerce Google/Competitors/SEM

2 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!

3 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

4 Google Google searches display two types of results: Organic Results – The ‘normal’ search results Sponsored Links – Results which advertisers have paid for THE BASICS OF GOOGLE SEARCH MONETIZATION

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

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

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

8 Google Google AdWords Advertise to people searching on Google and Google’sadvertising network Reach people actively looking for information about your products and services online. Sponsored Links Bow Ties - Free Shipping. 100% Silk - Self & Pre-Tied. Buy 3 get 1 Free. Only $14.95 each. Paul Fredrick Men's Ties Diverse collection of print & woven luxury Italian silk neckwear. Mens Bow Ties Brooks Brothers™ - Official Site. Shop Classic, Quality Fashions. Boys Bow Ties The clothes you love from J.Crew, now available for kids ages Bow Ties in Silk & Cotton Self-tie, pre-tied and clip-on. Over 200 patterns. Different sizes. Bow Ties in Silk & Cotton

9 Google Google AdWords

10 Google Google AdWords Advertise to people searching on Google and Google’sadvertising network Reach people actively looking for information about your products and services online. Easily control costs - pay only when people click on your ad Sponsored Links Bow Ties - Free Shipping. 100% Silk - Self & Pre-Tied. Buy 3 get 1 Free. Only $14.95 each. Paul Fredrick Men's Ties Diverse collection of print & woven luxury Italian silk neckwear. Mens Bow Ties Brooks Brothers™ - Official Site. Shop Classic, Quality Fashions. Boys Bow Ties The clothes you love from J.Crew, now available for kids ages Bow Ties in Silk & Cotton Self-tie, pre-tied and clip-on. Over 200 patterns. Different sizes. Bow Ties in Silk & Cotton

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

12 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

13 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.

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

15 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.

16 Google 96% of Google’s Revenue comes from advertising

17 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

18 We have only discovered the tip of Google’s iceberg of SEM revenue. Google Sponsored Links $$$$$$$???????

19 Thank you for your attention This Concludes Today’s Presentation