GOOGLE

Google Inc.is an American multinational internet and Software Corporation specialized in internet search, cloud computing, and online advertising technologies. Google hosts and develops a number of Internet-based services and products, and generates profit primarily from online advertising through its Ad Words program. The company was founded by Larry Page and Sergey Brin, often dubbed the "Google Guys", while the two were attending Stanford University as PhD candidates.

INTERNET BUSINESS MODEL: Online advertising and Internet search engine

Online Advertising Ninety-nine percent of Google's revenue is derived from its advertising programs. For the 2006 fiscal year, the company reported $10.492 billion in total advertising revenues and only $112 million in licensing and other revenues Google has implemented various innovations in the online advertising market that helped make it one of the biggest brokers in the market. Using technology from the company DoubleClick, Google can determine user interests and target advertisements so they are relevant to their context and the user that is viewing them. Google Analytics allows website owners to track where and how people use their website, for example by examining click rates for all the links on a page. Google advertisements can be placed on third-party websites in a two-part program. Google's AdWords allows advertisers to display their advertisements in the Google content network, through either a cost-per-click or cost-per-view scheme. The sister service, Google AdSense, allows website owners to display these advertisements on their website, and earn money every time ads are clicked. Internet Search engine Google Search, a web search engine, is the company's most popular service. According to market research published by comScore in November 2009, Google is the dominant search engine in the United States market, with a market share of 65.6%.Google indexes billions of web pages, so that users can search for the information they desire, through the use of keywords and operators. Despite its popularity, it has received criticism from a number of

organizations. In 2003, The New York Times complained about Google's indexing, claiming that Google's caching of content on its site infringed its copyright for the content. In this case, the United States District Court of Nevada ruled in favour of Google in Field v. Google and Parker v. Google. Furthermore, the publication 2600: The Hacker Quarterly has compiled a list of words that the web giant's new instant search feature will not search. Google Watch has also criticized Google's PageRank algorithms, saying that they discriminate against new websites and favor established sites, and has made allegations about connections between Google and the NSA and the CIA. Despite criticism, the basic search engine has spread to specific services as well, including an image search engine, the Google News search site, Google Maps, and more. In early 2006, the company launched Google Video, which allowed users to upload, search, and watch videos from the Internet. In 2009, however, uploads to Google Video were discontinued so that Google could focus more on the search aspect of the service. The company even developed Google Desktop, a desktop search application used to search for files local to one's computer. Google's most recent development in search is its partnership with the United States Patent and Trademark Office to create Google Patents, which enables free access to information about patents and trademarks

REVENUE MODEL Google has multiple revenue models. It earns profit from advertising fees, from functions such ad AdWords, a pay per click advertising programme which allows advertiser shows relevent or related advertisement from what users searching for. As you can see, AdWords also generates affiliates fee for Google. Google also have another revenue model which also an advertising form call AdSense. Website owners can enroll in the program to enable text and video advertisements. This has same concept as pay per click, advertisers are required to pay Google a fee for each time a user clicks on the advertisement.

US $ (in thousand)

Percentage

REVENUE MODEL Advertising & Search engine Google Website Google Network Website Licensing Total Revenue

10,624,700 5,787,900 181,400 16,594,000

64% 35% 1% 100%