1. BUS 550 Case Study Textbook Chapter14 Google: Search, Online Advertising, and Beyond Anthony Palanca

2. Google and Online Advertising  Online Ads have positive growth since 2006  Google controls internet search market share  Success through matchmaking  Most valuable media company in the world

3. Company Profile  Founded by Sergey Brin and Larry Page in 1998  Headquartered in Mountain View, CA  Green facility  Fortune’s Best Place to Work For 2007-2008  Encourages innovation – “20 percent time”

4. Internet Search  Google uses organic search and PageRank  Server farms needed for web index  Over 1 trillion URLs!  SEO is essential for marketing

5. Why Online Advertising?  Increased time spent online  Better ad performance tracking  Easier to target specific markets

6. Google’s Revenue Model  AdWords on Google search (2/3)  CPC and budget  Ad Rank  Automated auction with every search  Geotargeted  AdSense network (1/3)  More refined targeting  Various media formats  CPM and CPA

7. Customer Profiling and Targeting  Use of cookies  Computer profile  Retail shopping carts  Demographics  Privacy  Opt-in option and opt-out cookies  Interest-based ads  Missteps with Google Docs and Buzz

8. Online Fraud  Clicks and impressions  Enriching and Depleting  Click farms and Zombie networks  Rank-based impression  Disbarring  Link farming or spamdexing  Keyword stuffing

9. Business Challenges and Competitors  What happens when maturity hits?  Emerging outlets such as mobile and social networks  Take bigger risks  Antitrust laws lead to less software bundling  Google’s competition  Apple’s acquisition of Quattro Wireless  Bing and Yahoo  Google’s solutions  Increase internet access with O3b  Android

10. Multiple Choice  What are the names of Google’s advertising applications and primary source of revenue?  A. AdWow and AdSensation  B. AdWare and AdSoft  C. AdWords and AdSense  D. AdMe and AdYou