how does google make money v2
DESCRIPTION
5 minute overview of Google\'s Business Model and future directions.TRANSCRIPT
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How Does Make Money ?
Prateek Gera
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Advertising is the key source of revenue for Google today
Source: Google 10-K Filing , Feb 2010
Advertising on Gaurav’s YouTube channel earns revenue for him and Google.
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Google search enables two advertising revenue streams
Advertising on Google’s websites, e.g. google.com gmail.com orkut.com
Advertising on pages of Web Publishers, e.g. travelblog.org techcrunch.com
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Ad Words and Ad Sense are the primary engines for the Advertising revenue
Advertisers/ Business Owners
Web/ Content Publishers
Ad Words Ad Sense
Advertisers use “Ad Words” to bid on keywords
Content publishers use “Ad Sense” to become Google network members and earn revenue
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Advantage to users Free services (search, information, email, maps, etc.) Useful, relevant , non-invasive advertisements. Great online experience.
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There are two key trends that hold the potential of becoming big revenue drivers in the near future
Convergence of Cell Phone & PC
> 100,000 Android Phones activated every day
Pervasive Internet
> by 2011 5x> non –PC devices *IDC
Google TV
Source: JPMorgan: AdStats Oct
TV advertising is $150bn
TAM
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Competition in core search driven advertising is growing but these will generate $2.38bn in 2010*
• YouTube• Double Click• Mobile Internet Advertising• Google Apps• Mobile Hardware
* Source Caris & Company Estimates