By: Sam Poggi. 1999 Google Inc. 39 employees Mostly engineers Money was running out, and Google...
-
Upload
jean-cecily-cunningham -
Category
Documents
-
view
214 -
download
0
Transcript of By: Sam Poggi. 1999 Google Inc. 39 employees Mostly engineers Money was running out, and Google...
By: Sam Poggi
1999 Google Inc.39 employees
Mostly engineersMoney was running out, and Google needed a
business model that would begin to bring in money
Google in 1999 cont…Could have made a deal with DoubleClick
An ad network that specialized in graphical banners
Turned down the opportunity because it went against the ideals of page and BrinThe ads had no relevance to anything
The New ApproachThey would sell only text adds to sponsors who
targeted particular key wordsEx. “Ford cars”
An ad for Ford Motor Company would appear above the results
They were sold on a cost per-thousand model (CPM)
Advertisers paid by the number of impressions Google delivered
Ultimately if this philosophy did not work, Google would make the deal with Double Click
Nasdaq Market Crash.com crash
DoubleClick’s stock went from $150 to $15When the market crashed, Google looked to
GoTo.com for their business modelAllowed Advertisers to buy text ads online with
a credit cardGoogle separated the search results from the
ad results
October 2000AdWords
“Have a credit card and 5 minutes? Get your ad on Google today.”
Still maintained a CPM approachAdvertisers paid by the impression, not by the
clickBecame a big hit
Dealing with GrowthIn August 1999 , Google had 3 million search
queries a dayBy mid 2000, the search queries increased to
18 million per dayThe Index surpassed 1 billion documents
Making Google the largest search engine on the web
The Deal with YahooGoogle replaced Inktomi as Yahoo’s core
search serviceThe deal validated Google’s technology, and
brought more people to the siteYahoo bought a $10 million dollar equity
stake in Google
Late 2000Adwords debutsGoogle was having 60 million search queries
per dayGoogle had yet to spend any money on
marketing
Advertising and MarketingEveryone else in the search business was
advertisingGoogle began to look for a way to advertise,
but ultimately found noneGoogle then scratched the plan to market and
decided to use PR as a tool for getting people to read and talk about Google
Google’s ExpansionGoogle went from a few employees to forty in
its first year, then to 150 by 2000Google had a very strict hiring process, often
times they would debate for hours about a particular candidate
Google wanted to avoid the hiring spiral
Eric SchmidtCEO of Google since 2001Went to BerkleySince he took over the company has never
had a down quarter
Growing too much?By July 2001 Google had over 200 employees
and were hiring five more per weekThe hiring spiral became a real threat
“Don’t be evil”This was put in the corner of every blackboard
to remind people to have good business ethics
2001: The Year Google Got BigHandling more than 100 million searches per dayAcquired DejaNews
A public messaging system with nearly 500 million posts on a wide variety of subjects
Much faster than just using the web crawlerGoogle then went on to buy Blogger, Picasa, and
KeyholeThese launched Google print
Google Images ballooned to 250 million imagesOverall, Google had over 3 billion total
documents
2001, Cont.Serving search queries in 40 different
languagesEntry into the mobile phone market
Partnerships with Cingular, AT&T, and Handspring
Brin and Page ultimately regained control of the company, and made all ideas go through them
2001: Cont.AdWords was growing rapidly
$85 million in revenueOverture had $288 million in revenue, and
Google took note of their pay-per click methodIn Overture’s model, advertisers could buy the
top linkGoogle made a model where they ranked the
ads based off their popularity and cost per clickThis was called AdRank
AdSenseAdSense allowed third party-publishers to
access Google’s network of Advertisers and sign up for AdSense
Google would then scan the site and place relevant ads on the site similar to the way Google does for itself
By 2005 it was 15% of Google’s overall revenues