Everyone knows that Google Inc.'s innovations in search technology made it the No. 1 search engine. But Google didn't make money until it started auctioning ads that come out alongside the search results. Advertising today accounts for 99% of the income of a company whose market capitalization now tops $100 billion.
Now, research is showing that Google's auction methodology, invented internally and so significant for its success, is far more modern than auction experts once believed. While apparently similar to earlier types of auctions, it is a "novel mechanism" that "emerged in the wild," write the authors of The High Price of Internet Keyword Auctions, a new study by Benjamin Edelman of Harvard University, Michael Ostrovsky of Stanford University, and Michael Schwarz of the University of California at Berkeley. Google's AdWords became so successful after its debut four years ago that some of its key features were rapidly adopted by Yahoo! Inc., then the search-ad leader.
Google is equal with God in the internet world and its success has motivated eleven of thousands of internet companies. Following are some of the factors which I feel contribute to the Google success story:
1. Smart Hiring: People indeed make all the difference. Very exact hiring process ensured inflow of very very talented people in the association, resulting in great products, smart marketing and aggressive sales. And as the saying goes Good aptitude attract more good talent.
2. Increase an bionetwork for others to create money: Google created an industry in itself for people to build money via Google AdSense. little companies who could not afford and manage a sales force could now make money simply by integrating the Google ad scripts and Google search bar on their website. People worked hard to create content and make money out of it. Google gave them hope and created many internet moguls. But in the whole procedure what actually was also happening was that Google was getting more and more content stock where they could serve ads; they were now having more locations from where people were searching using Google's search engine.
3. Smart Acquisitions: They realized the potential of video content and acquired YouTube. They saw the powerful rise of Facebook, MySpace and acquired Orkut to compete. The acquisition team of Google is forever on the prowl sniffing innovation in the internet world!
4. High value but for Free: Google developed a quality search engine, had the brilliance of coming up with a very easy and user friendly front end propose and then offered the search service for free to the masses! What a disaster it would have been had they charged money for the service.
0 comments:
Post a Comment