What is the value that Google creates for (a) customers, and (b) advertisers? How does this value translate into higher revenues and profits?
Google creates value for customers by having a state of the art search engine, one that is rated number one for regenerating a list of web pages with the most useful ones on the top. Google realized the problem with pre-existing search engines and fixed that problem so that the internet community would be able to operate more efficiently. Since customers do not have to pay a fee to use Google, this is a very valuable resource for them.
Google creates value for advertisers in a similar fashion. Since the web site is free to customers, they handle over 300 million queries a day, and since Google found a way to put the results of a web search in an order that lists the most useful ones on top, they have come to own over 75% of the Internet search market. A company that uses Google to advertise is sure to get coverage. Google also doesn’t make sponsors pay unless a user clicks on it from a Google link, so the advertiser is sure that people are actually having their ad seen for the money being paid.
Since Google has such a unique ability to shift through information, and since they own a majority of the search engine market, a majority of companies want to advertise through the company. Google is a company that makes profits off from advertisements, so the more companies that advertise, the higher the revenues and profits will be for the company.
Subscribe to:
Post Comments (Atom)
2 comments:
Google Question #2- Jason Grier
There were problems with the existing search engines and they did a poor job of distinguishing between useful and trivial websites. Brin and Page decided to build a search engine that not only would examine the words on webpages, and then index them as other search engines did, but also would look at how and where these words were being used and at the number of other websites linked to a page
The competitors dont have a chance at this time. Google is so far ahead. You dont hear, "Lets Yahoo! it", you hear lets Google it. The advantages that Google hasis superior to the competitors.
To keep competitors at bay Google must use the latest technology and use feedback from Google users to see how they can improve and what they should do different. Because they are so far inhead of the competitors, they have to think one step further inhead of them so that the competitors with always be one step further behind.
I think that the purpose of google is to organize tons of information and make it fully accessable to the world. There a alot of search engines on the internet but I think that in the near future they will all start to collaborate with google, which will result in google becoming the WALMART of search engines on the internet. Because Google is so far ahead of its competitors, I think that others will have no choice but to work with google instead of against.
Post a Comment