1 Navigation Section - 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) 450 articles on IBM 990 on Toyota Larry PageSergey Brin

2 Navigation Section - Google must be pretty important if we’re going to devote time in class to study it… IT IS. “Google's technology has emerged from a series of continuous improvements or what Japanese management consultants call Kaizen.” Data from Yahoo Financial

3 Navigation Section - Google searches display two types of results: Organic Results Sponsored Links THE BASICS

4 Navigation Section - Google searches display two types of results: Organic Results Sponsored Links THE BASICS Google eschews ‘PAID INCLUSION’ or ‘PAID PLACEMENT’ By the way, what is ‘paid inclusion’? What is ‘paid placement’? For that matter, what is ‘eschews’?

5 Navigation Section - THE BASICS Google has become the dominant search engine Data from Search Engine Watch

6 Navigation Section - HOW GOOGLE CHANGED SEARCH Early search engines competed primarily on the quantity of returns

7 Navigation Section - 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.

8 Navigation Section - 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)

9 Navigation Section - 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

10 Navigation Section - 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.

11 Navigation Section - 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.

12 Navigation Section - 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’

13 Navigation Section - 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?

14 Navigation Section - 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

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

16 Navigation Section - 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.

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