A quick introduction to the self-reinforcing engines that drive much of Google's success. It's a little theoretical, but it demonstrates - I hope - why Google's model is so powerful.
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Five (and a half) engines that drive Google's search ecosystem
1. The five (and a half) engines
that drive Google's
search ecosystem
Matt Loney
www.scrumulus.com
Copyright Matt Loney, scrumulus.com
2. Discovery
Point of the whole system is to convert 1bn
individuals from people who are searching
into paying customers
Person is incentivised to search with Google
due to perception of relevant results
Google's incentive is to produce more
relevant results
This is Engine #1
Discovery
Person searching
via search
Search results
Customer
Conversion
Drives effort from person
to produce Drives searching
more relevant usage to paying
search results customer is
via search
Better
Search ££££
Google search results 1bn individuals
Copyright Matt Loney, scrumulus.com
3. Content
Search results influenced by PageRank
High PageRank means high position in
Content website
search, generating more SEO traffic to
content sites
Site owners are incentivised to tailor site,
content to achieve higher PageRank
Content
This is engine #2
Drives site
design and
SEO
content Traffic Discovery
Google PageRank
Person searching
via search
Search results
Customer
Conversion
Drives effort from person
Drives site to produce Drives searching
PageRank
Better site PageRank
algorithm more relevant usage to paying
customer is
design and search results
via search
content
Better
Search ££££
Google search results 1bn Individuals
Copyright Matt Loney, scrumulus.com
4. Ad traffic
Google Ads
Google AdSense
££ Drives ad
revenue
Drives
inclination to
use Google Ad traffic
Adsense
Site owners place Google ads on their site
Ads on site Site owners incentivised to generate ad
Content website
traffic to Google AdSense to increase
revenue
targetting
supported
content
Ad
Ad-
Google Ads incentivised to pay minimum
to site owners to increase ad traffic
Content
This is Engine #3
Drives site
design and
SEO
content Traffic Discovery
Google PageRank
Person searching
via search
Search results
Customer
Conversion
Drives effort from person
Drives site to produce Drives searching
PageRank
Better site PageRank
algorithm more relevant usage to paying
customer is
design and search results
via search
content
Better
Search ££££
Google search results 1bn individuals
Copyright Matt Loney, scrumulus.com
5. Referral traffic
Google Ads
£
Google AdWords
Google AdSense
Google
bank
££ Drives ad Obscure Drives £££
revenue relationship potential
customers
Drives
inclination to Referral Drives
use Google Ad traffic increased
Adsense traffic spend
While site owners deal with AdSense,
merchants get their traffic via Adwords,
Ads on site and are incentivised to spend more with Marketing
Content website
AdWords to increase referrals
Merchant
targetting
supported
content
Google is incentivised to send most traffic
Ad
Ad-
to the highest bidders
Content This is Engine #4
Drives site
design and
SEO
content Traffic Discovery
Google PageRank
Person searching
via search
Search results
Customer
Conversion
Drives effort from person
Drives site to produce Drives searching
PageRank
Better site PageRank
algorithm more relevant usage to paying
customer is
design and search results
via search
content
Better
Search ££££
Google search results 1bn individuals
Copyright Matt Loney, scrumulus.com
6. Merchant/Customer interaction
Google Ads
£
Google AdWords
Google AdSense
Google
bank
££ Drives ad Obscure Drives £££
revenue relationship potential
customers
Drives
inclination to Referral Drives
use Google Ad traffic increased
Adsense traffic spend
Merchants use referral traffic to convert
potential customers into customers
Ads on site Marketing
Content website
Naturally, the merchant is incentivised to
Merchant
sell goods or services to increase revenue
Marketing
Convert to
targetting
customer
supported
spend
content
Ad
Ad-
The customer is incentivised to inject
more money into the system
Content Fulfilment
This is Engine #5
Goods or
Drives site
SEO services Drives
capacity to
design and
content Traffic Discovery increase
Google PageRank
Person searching
revenues
via search
Search results
Customer
Conversion
from person Drives revenue
Drives site
Drives effort
to produce searching from outside ££££
PageRank Drives the loop
Better site PageRank
algorithm more relevant usage to paying
customer is
design and search results
via search
content
Better
Search ££££
Google search results 1bn individuals
Copyright Matt Loney, scrumulus.com
7. A quick word about AdWords
Google Ads
Competition from other advertisers
££ increases PPC prices ££
Google AdWords
Google AdSense
Google
bank
£££ Drives ad Obscure Drives £££
revenue relationship potential
customers
Drives
inclination to Referral Drives
use Google Ad traffic increased
Adsense traffic spend
Google AdWords bidding process based
in part on merchant competition and
Ads on site search volumes maximises Google Marketing
Content website
revenue
Merchant
Marketing
Convert to
targetting
customer
supported
spend
content
Google uses all available data on the
Ad
Ad-
individual to increase relevance of search
results and ads
Content Fulfilment
Browsing history
Demographic data Goods or
Drives site
SEO Google Chrome services Drives
capacity to
design and
content Traffic Discovery increase
Google PageRank
Person searching
revenues
via search
Search results
Customer
Conversion
from person Drives revenue
Drives site
Drives effort
to produce searching from outside ££££
PageRank Drives the loop
Better site PageRank
algorithm more relevant usage to paying
customer is
design and search results
via search
content
Better
Search ££££
Google search results 1bn individuals
Copyright Matt Loney, scrumulus.com
8. Ads in Google search results
Google Ads
Competition from other advertisers
£££ increases PPC prices ££
Google AdWords
Google AdSense
Google
bank
££ Drives ad Obscure Drives £££
revenue relationship potential
customers
Drives
inclination to Referral Drives
use Google Ad traffic increased
Adsense traffic spend
Plus, Google places its own contextual
ads in search results in its search results
Ads on site pages, as shown on the next slide Marketing
Content website
Merchant
This is a tertiary engine because it would
Marketing
Convert to
targetting
customer
supported
spend
content
not sustain itself without the content sites
Ad
Ad-
– would you go to a site to search just ads
alone?
Content Fulfilment
Therefore this is Engine #5.5 Browsing history
Demographic data Goods or
Drives site
SEO Google Chrome services Drives
capacity to
design and
content Traffic Discovery increase
Google PageRank
Person searching
revenues
via search
Search results
Customer
Conversion
from person Drives revenue
Drives site
Drives effort
to produce searching from outside ££££
PageRank Drives the loop
Better site PageRank
algorithm more relevant usage to paying
customer is
design and search results
via search
content
Better
Search ££££
Google search results 1bn individuals
Copyright Matt Loney, scrumulus.com
9. Ads in Google search results
Google Ads
Competition from other advertisers
££££ increases PPC prices ££
Google AdWords
Google AdSense
Google
bank
£ Drives ad Obscure Drives £££
revenue relationship potential
customers
Drives
inclination to Referral Drives
use Google Ad traffic increased
Adsense traffic spend
Drives
temptation
to make
Marketing
Adsense ads on
Content website
Ads on site ads more
Google search
prominent
SEM traffic
Merchant
Marketing
Convert to
targetting
supported
customer
spend
content
Ad
Ad-
Drives
SEM traffic
that removes
Content need to pay Fulfilment
content
sites Browsing history
Demographic data Goods or
Drives site
SEO Google Chrome services Drives
capacity to
design and
content Traffic Discovery increase
Google PageRank
Person searching
revenues
via search
Search results
Customer
Conversion
from person Drives revenue
Drives site
Drives effort
to produce searching from outside ££££
PageRank Drives the loop
Better site PageRank
algorithm more relevant usage to paying
customer is
design and search results
via search
content
Better
Search ££££
Google search results 1bn individuals
Copyright Matt Loney, scrumulus.com
10. So we have 5.5 engines that drive the ecosystem
Google Ads
£ Drives ad Drives £££
revenue potential
customers
Drives
inclination to Referral Drives
use Google Ad traffic increased
Adsense traffic spend
Drives
temptation
to make
Adsense ads on
Content website
ads more
Google search
prominent
SEM traffic
Merchant
Drives
SEM traffic
that removes
need to pay
content
sites
Goods or
Drives site
SEO services Drives
capacity to
design and
content Traffic Discovery increase
revenues
via search
Drives revenue
Drives site
Drives effort
to produce
from outside ££££
Drives the loop
Better site PageRank more relevant usage
design and search results
content
Better
Search ££££
Google search results 1bn individuals
Copyright Matt Loney, scrumulus.com
11. And five points of value conversion...
Google Ads
Google AdWords
Google AdSense
Obscure
relationship
Marketing
Content website
Ads on site
Merchant
Marketing
Convert to
targetting
supported
customer
spend
content
Ad
Ad-
Content Fulfilment
Google PageRank
Person searching
Search results
Customer
Conversion
from person
searching
PageRank
to paying
algorithm
customer is
via search
Google search 1bn individuals
Copyright Matt Loney, scrumulus.com
12. ...of which Google controls two directly
Google Ads
Google AdWords
Google AdSense
Obscure
relationship
Marketing
Content website
Ads on site
Merchant
Marketing
Convert to
targetting
supported
customer
spend
content
Ad
Ad-
Content Fulfilment
Google PageRank
Person searching
Search results
Customer
Conversion
from person
searching
PageRank
to paying
algorithm
customer is
via search
Google search 1bn individuals
Copyright Matt Loney, scrumulus.com
13. and so influences the other three with its apps...
Google Ads
Google AdWords
Google AdSense
Obscure
relationship
Drives
temptation Google Analytics
to make will increasingly
Google Apps for busisness
Google Apps Marketplace
Marketing
Content website
Ads on site ads more
work with
Google Tag Manager
Google Tag Manager
Google Webmaster
prominent
Google Webnaster
Google Analytics
Google Analytics
merchant CRM.
Google Admeld
Merchant
Universal Analytics
Marketing
Convert to
targetting
supported
customer
spend
content
Will bring integration
Ad
Ad-
across platforms,
Drives customer touch
SEM traffic
that removes points
Content need to pay Fulfilment
content
sites Browsing history
Demographic data
Google Chrome
Google PageRank
Person searching
Search results
Customer
Conversion
from person
searching
PageRank
to paying
algorithm
customer is
via search
Google search 1bn individuals
Copyright Matt Loney, scrumulus.com
14. The final picture
Google Ads
Competition from other advertisers
££££ increases PPC prices ££
Google AdWords
Google AdSense
Google
bank
£ Drives ad Obscure Drives £££
revenue relationship potential
customers
Drives
inclination to Referral Drives
use Google Ad traffic increased
Adsense traffic spend
Drives
temptation Google Analytics
to make will increasingly
Google Apps for busisness
Google Apps Marketplace
Marketing
Adsense ads on
Content website
Ads on site ads more
Google search
work with
Google Tag Manager
Googl Tag Manager
Google Webmaster
Google Webmaster
prominent
Google Analytics
Google Analytics
merchant CRM.
Google Admeld
SEM traffic
Merchant
Universal Analytics
Marketing
Convert to
targetting
supported
customer
spend
content
Will bring integration
Ad
Ad-
across platforms,
Drives customer touch
SEM traffic
that removes points
Content need to pay Fulfilment
content
sites Browsing history
Demographic data Goods or
Drives site
SEO Google Chrome services Drives
capacity to
design and
content Traffic Discovery increase
Google PageRank
Person searching
revenues
via search
Search results
Customer
Conversion
from person Drives revenue
Drives site
Drives effort
to produce searching from outside ££££
PageRank Drives the loop
Better site PageRank
algorithm more relevant usage to paying
customer is
design and search results
via search
content
Better
Search ££££
Google search results 1bn individuals
Copyright Matt Loney, scrumulus.com