By Michael Fuhrman

Mission Statement To organize the world's information and make it universally accessible and useful

History Founded by Larry Page and Sergie Brin in 1996 Originally a research project at Stanford Created new technology: Page Rank Website’s relevance based on the number of pages and the importance of those pages, that linked back to the original site Based out of a friend’s garage in Menlo Park By 1999 the headquarters moved to Mountain View

Timeline 1996: Started Google as a research project 1997: Offer to sell Google to George Bell for 1M and are rejected 1998: Incorporated as private company 2000: Created AdWords after Bill Gross of Idealab refused to sell them a similar idea 2004: IPO Market Cap of 23 billion Current Valuation: 195 billion

Culture Focus on creating a fun work environment Restaurants, gyms, Laundromats, etc. in order to keep employees focused on work Casual dress code “Googlers” encouraged to spend 20% of time on innovation Ranked 1 st by Fortune Magazine’s list for the best companies to work for “You can make money without doing evil” “You can be serious without a suit” “Work should be challenging but the challenge should be fun”

Core Competencies Focus on pairing internet surfers with advertisers and taking a cut $29 billion in 2010 Their matchmaking capabilities have been considered “the most successful business idea in history” Earns more advertising revenue than any US media company

US Search Market Share

Understanding Search Page Rank Popularity Focus: no charge for web ranking in organic search results Pages ranked by how many other pages link to them Also about 200 other criteria to rank relevance Search Engine Optimization Link Fraud: Creating bogus websites to link back to the primary site JC Penny: Organic results plummeted from 1 st to 71 st

Search Continued.. Uses “Spiders”, “Web crawlers”, or “software robots” to crawl web and uncover info Search results provide copy of site’s contents Runs over 1.4 million servers to index the web

AdWords Search Engine Marketing (SEM) – running and optimizing search engine ad campaigns Google AdWords Setup AdWords Account Specify ad campaign Bid on key words (actually pay 1 cent more than next highest bid) Billed based on a pay per click (PPC) model Results ranked based on max cost per click and quality score Ranking = Max CPC x Quality Score Provides about 66% of Google’s total revenue

AdWords Continued.. Quality Score Click-through rate: The number clicks an add receives divided by the number of times it is shown Relevance to search History of click performance for keyword Assessment of user experience with specific page

Most Expensive Words

AdSense Gives users programing code to host other advertisements on their own sites No discretion over what adds are shown Users are paid 70 cents on the dollar by Google 30% of Google’s Revenues come from AdSense

Customer Profiling Cookies: Files stored on the computer which are accessed by the web server or client computer to specifically tailor a visit IP Address: Location, employer, university, etc. Browser: Tech ads to Chrome users, etc. Past web history Items placed in shopping cart

Privacy Policy Opt-out cookie User data not sold to 3 rd parties Activities in Gmail, Docs and other services are not added to user profiles Full disclosure of targeting

Privacy Issues 2009 flaw granted access unauthorized access to Google docs 2010 street view cars inadvertently collected personal data such as s and passwords 2011 plugged a hole which could potentially allow hackers access to personal information from Android phones

Potential Problems Locating future growth models will be hard after AdWords and AdSense mature Inability to successfully enter the social media market Google Plus Low switching costs for advertisers Competition

Facebook Apple Microsoft Bing Amazon Twitter Yahoo

Acquisitions Motorola $12.5 billion Biggest deal to date 17,000 patents (protection against potential iPhone suits) Youtube 1.65 billion 2009 ad revenue: $240 million 2009 operating expenses: $711 million $471 million shortfall

Current Developments Google Wallet Google+ Google Apps Web-based software as service offerings Word processor Spreadsheets Presentation software Google Music

Questions 1. Who is Google’s biggest current competitor? A. Apple B. Facebook C. Microsoft D. Yahoo 2. What has been the main contributor to the financial success of Google? A. Youtube B. AdSense C. AdWords D. Google Aps 3. What is link fraud? A. Creating bogus websites that link back to the primary site B. Creating faulty links to malware sources on a website C. Stealing links from other companies and putting them on your own website D. Disabling competitor’s links to make your own page-rank higher