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Google's Internet Business Model - Term Paper Example

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The author describes Google's business model which depends mainly on search services and “highly targeted advertising”. They profit from relevant sponsored links based on a user's keyword search through their search engine. They were also the first to introduce “content-targeted advertising”. …
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Googles Internet Business Model
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Download file to see previous pages Google is presently touted as the "world's best search engine" ("Company Profile"). They pioneered the use of text-based ads with a search engine that has a clean, spartan layout. The creators also devised a system of page ranking that assesses a site's value on the premise that the number of sites pointing to a particular page is an indicator of its importance. This system, coupled with a match to a searcher's text query can give out the most relevant and accurate results. Their innovative take on the search engine is the foundation of their success, and they have branched out to offer a wide array of services.
Google's content-based advertising scheme results in a service that accurately zeroes in the appropriate market. This produces a " higher than the industry average " ("Company Overview") click-through rate for their text ads compared to traditional forms of Internet advertising (banners, animation, e-mail, etc.). Their philosophy regarding advertising includes the precept that one "can make money without doing evil" ("Corporate Information"). They maintain that the ads on their results pages can actually "provide useful information" ("Corporate Information") and are only shown on the basis of relevance to the person's query.
The company also adopts an unconventional approach to its business model. Instead of promoting their company as a brand, like what their competitors do, their focus is in enhancing the technology of their primary service-that is a faster, easy to use, and effective search engine. Their initial popularity is owed more to word-of-mouth, rather than to marketing and brand promotion. This has enabled them to tap into greater revenue-generating services such as AdWords and AdSense ("Corporate Information").
Google proclaims that its company's mission is to provide a superior search engine "organizing the world's information and making it universally accessible and useful" ("Company Profile"). It also projects a relaxed corporate atmosphere which is elucidated by their philosophies such as "work should be challenging and the challenge should be fun" or "you can be serious without a suit" ("Corporate Information").   ...Download file to see next pagesRead More
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