trent hemann bunde walker james yost. industry involvement ◦ internet industry search engine ...
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9% of U.S advertising spending 16% increase in 2010 Continue to grow as technology becomes more efficientTRANSCRIPT
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Trent HemannBunde Walker
James Yost
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Industry involvement◦ Internet Industry
Search Engine Online Advertising
◦ Software Industry
◦ Electronic Industry
Industry Analysis
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9% of U.S advertising spending
16% increase in 2010
Continue to grow as technology becomes more efficient
Online Advertising Industry
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Online Advertising Spending
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Year 2000- developed 10 new language versions◦ Eliminated language barriers◦ Expanded customer base greatly
One year later- over 26 total language versions
Global Expansion
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Yahoo (2000)◦ Agreed to be default search provider◦ 10,000 searches/day before partnership◦ 500,000 searches/day after partnership
AOL (2002)◦ Had 34 million customer◦ Leader in e-commerce, web brands and internet
technologies
Google’s Partnerships
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Urchin Software Corporation (2005)◦ Used by owners of websites◦ Helps understand users’ experience◦ Tracks marketing performance
Milestone for Google’s online advertising◦ Became leading online advertiser in Industry
Acquisitions
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Yahoo◦ Offers news, search, messenger and email◦ Created rich content
Allowed users to stream music/videos straight from website
◦ Offers travel applications
Competitors
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Apple◦ Safari vs Google Chrome
◦ iTunes vs My Space and Pandora
◦ iPhone vs Android
Competitors
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AdWord◦ Helps website owners measure amount of activity◦ Gives feedback on owner’s ad
Shows if click leads directly to purchase or signup◦ Helps owner see strong/weak selling points◦ Strong selling point of Google for customers
Key Success Factors
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AdSense
◦ Enables ads on customers website◦ Ads relevant to website content◦ Creates revenue on a “per-click” basis◦ Generated over $2.04 billion in 1st qt 2010
Key Success Factors
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Google’s mission is to organize the world‘s information and make it universally accessible and useful.
It’s best to do one thing really, really well. You can make money without doing evil. Great just isn’t good enough.
Google’s mission
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Strengths◦ Brand name,Search, Employees, Innovation
Weaknesses◦ Lack of Integration of products
Opportunities◦ Google TV, Android
Threats◦ Bing/Baidu, Apple/Blackberry/Microsoft
SWOT Analysis
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Search Ads Android Google TV YouTube Site search Chrome
Google’s Products
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No ads on the normal Google search AdWords
◦ Advertisers use to advertise on the side of Google page with key words
AdSense◦ Delivers ads from AdWord program to partner
websites
Search
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Mobile and Tablet OS Offered free to manufacturers Only free OS for smartphones and tablets Android Market
Android
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Blue Ocean Strategy Includes Google search, Chrome, Android,
Apps, Flash, and other Google products Help integrate Google products
Google TV
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More Cash than Current Liabilities Rely on equity rather than Liabilities Always looking for strategic acquisitions
Financial
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The right people on the bus 20,000 Employees We love our employees, and we want them
to know it $1,000 Bonus and 10% Raise 20% of Time for Employees
Employees
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Strategic Issues Weaknesses that need to be corrected Threats that need to be ignored or
addressed Opportunities that need to be taken
advantage of Continuing Strengths
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Lack of Product Integration Advertise Google products on search site. Low Cost Maintains simplicity Pull down menu
◦ Choose what you use the most Implementation
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Social Networking Orkut
◦ Developed by Orkut Büyükkökten◦ Brazilians account for 54% of total users
In 2008, fully managed and operated by Google Brazil
Have branches in U.S. and U.K. Implementation
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Threats High Levels of competition
◦ search, e-commerce, advertising, etc. Exchange Rate Fluctuations
◦ 53% of Revenue comes from international operations
Security Issues◦ Access to private information
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Opportunities New Products and Services
◦ Google TV Strategic Acquisitions
◦ AdMob Growing mobile advertising market Promising future for Android Smartphone
◦ Passed iPhone in U.S. consumer sales
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Strengths Brand Image
◦ Global Strong Infrastructure Base
◦ Core of all products◦ Websites that create advertising opportunities
67% of 2009 Revenue◦ Home Grown Software