2. Google –Business Overview
• Established in 1998, it has now surpassed Time Warner to be the number one
revenue generating media conglomerates.
• Three major acquisitions in Google’s history with over USD 1 billion price tag.
• On October, 2006, Google acquired Doubleclick for USD 1.65 billion.
• On April 2007, Google acquired video sharing site Youtube for USD 3.1 billion.
• On April, 2011, mobile giant Motorola for USD 12.5 billion.
• Google’s annual revenue in 2011 -USD 37.0 billion.
• Paid search revenue (mostly Google Adwords) accounts for 69 percent
(USD 25.53 billion)
• Display advertising revenue (Adsense display, sales of video and
banner ads on YouTube) accounts for 26 percent, with the
amount of USD 9.62 billion.
• Google’s mobile advising sector, a run rate of over USD 2.5 billion
3. Challenges and Goals
• Google’s effort in Youtube and Adsense has been paying off
• The current focus is on the development of mobile advising sector
• The internet is moving to mobile
• Google’s conquest towards the mobile world is just at the beginning
• Google should utilize its own social media products to expand its mobile
coverage
• Fully develop and control consumers’ end products, which can be:
• mobile video
• social network
• mobile payment tools
• mobile GPS device
• mobile phones.
4. Google –The Advertising Company
• The essential theme of Google’s products -
• To generate advertising revenues through the established marketing
channels by connecting distributers and consumers.
• Public campaigns would emphasize publicity for distributers for
consumer, and resource for consumers
5. Introduction Strategies
• “Search Your Life Perfectly”
• Google is not only about “making money without doing evil”.
• Utilizing own Youtube and Google Plus sites, using successful example from
previous super bowl ad Parisian Love to fully create public buzz
• Collecting lovely stories from users around the world, encourage them to
share on Youtube
• Collecting inspiring search stories using Google’s search engine
• People find and reconnect with lost relatives with Google
• People who connect and help people below poverty with Google
• The search engine is about connect. Raise public
awareness, user participation and brand loyalty – A series
of stories
6. Short term strategies
• Following the buzz of “Search Your Life Perfectly”
• Pushing for display advertising sales in mobile devises, and inserting advertising
product in Youtube videos
• Involvement of VEVO
• Network speed and capacity to allow mobile access of Youtube app
• To continue develop Google’s location based service product like Google Map, to
create a better integrated local information review sharing system that include:
• local deals - Dealmap
• public venue - Zagat
• business reviews –Google Map
• real estate reviews –Google Real Estate
• This would not only be a great referral method among social groups, but also a much
broader marketing channel to connect local business and consumers, the
opportunities created in between can be huge
• Simulating Facebook and Foursqaure’s model -Google Plus
• Develop more mobile apps for Google’s own products
7. Mid-term and long term strategies
• To continue the development on personal assistant products-
• Visual assistant -Google Goggle
• Voice assistant products (Apple has gone many steps further with SIRI)
• Keep the systems partially open for third party editing. It is Google’s tradition
to keep its products and systems open to third parties.
• With strategies on Adsense, Google Maps, Google +1 button, Android App
Inventor, Google has been fully utilize resources across the internet to benefit
its system.
8. Budget, Timeline -Introduction Strategies
• Campaign launch dated December, 2011
• Run for a period of 45 days, during the holiday season when people have
spare time and are all dire to be connected
• Estimated budget USD 50K/month
• Monitor and measure Google’s market shares in both PC and Mobile sector
• Google search engine currently at 65.6%
• Monitor campaign participants and views/likes
• Monitor adware/adsense user volume
• Monitor Google + users and Youtube traffic
• Make adjustments if necessary, based on feedback, bring campaign to
mainstream media including TV and magazines
• Run from Christmas to Super Bowl to maximize viewership
• Estimated budget USD 10 Million
9. Timeline -Future Strategies
• Pushing for display advertising sales in mobile devises, and inserting
advertising product in Youtube videos
• Early 2012
• To continue develop Google’s location based service product like Google
Map, to create a better integrated local information review sharing system
• May 2012, prior to summer vacation season and school
recess, continuously to be refined
• Visual assistant -Google Goggle
• Voice assistant products (Apple has gone many steps further with SIRI)
• November, 2012, prior to holiday season
10. Evaluating success
• 10% annual growth in PC, 250% annual growth in Mobile
• Current Google Annual Revenue Breakdown:
• Paid search: $25.53 billion
• Display: $9.62 million
• Google Annual Revenue Breakdown by end of 2012:
• PC paid search: $28.083 billion
• PC display: $10.58 million
• Total US (at 55 percent): $21.26 billion
• Total international (at 45 percent): $17.98 billion
• Mobile paid search: $4.37 billion
• Mobile display: $1.875 million
• Total US (at 55 percent): $3.44 billion
• Total international (at 45 percent): $2.81 billion
Revenue Data from Searchengineland.com Will Google See $6.25 Billion In Mobile Ad Revenue Next Year? Oct 17, 2011 at 3:58pm ET by Greg Sterling