Trent Hemann Bunde Walker James Yost

Trent HemannBunde Walker

James Yost

Industry involvement◦ Internet Industry

Search Engine Online Advertising

◦ Software Industry

◦ Electronic Industry

Industry Analysis

9% of U.S advertising spending

16% increase in 2010

Continue to grow as technology becomes more efficient

Online Advertising Industry

Online Advertising Spending

Year 2000- developed 10 new language versions◦ Eliminated language barriers◦ Expanded customer base greatly

One year later- over 26 total language versions

Global Expansion

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

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

Yahoo◦ Offers news, search, messenger and email◦ Created rich content

Allowed users to stream music/videos straight from website

◦ Offers travel applications

Competitors

Apple◦ Safari vs Google Chrome

◦ iTunes vs My Space and Pandora

◦ iPhone vs Android

Competitors

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

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

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

Strengths◦ Brand name,Search, Employees, Innovation

Weaknesses◦ Lack of Integration of products

Opportunities◦ Google TV, Android

Threats◦ Bing/Baidu, Apple/Blackberry/Microsoft

SWOT Analysis

Search Ads Android Google TV YouTube Site search Chrome

Google’s Products

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

Mobile and Tablet OS Offered free to manufacturers Only free OS for smartphones and tablets Android Market

Android

Blue Ocean Strategy Includes Google search, Chrome, Android,

Apps, Flash, and other Google products Help integrate Google products

Google TV

More Cash than Current Liabilities Rely on equity rather than Liabilities Always looking for strategic acquisitions

Financial

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

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

Lack of Product Integration Advertise Google products on search site. Low Cost Maintains simplicity Pull down menu

◦ Choose what you use the most Implementation

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

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

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

Strengths Brand Image

◦ Global Strong Infrastructure Base

◦ Core of all products◦ Websites that create advertising opportunities

67% of 2009 Revenue◦ Home Grown Software