Thursday, October 11, 2007

Google Analysis (Part 2/4) by Ana V. Ricaurte


On its own words, Google is a global technology leader focused on improving the ways people connect with information. Google first product and core advantage is its search engine platform. Google maintains an index of websites and other content, and makes this information freely available to anyone with an Internet connection. Its search technology allows people to obtain nearly instant access to relevant information from its online index. For the common users it is unclear where Google index finishes and the internet starts. Google seems to be searching the internet instantly but what it is actually doing is searching in its indexed part of the internet. Google generates revenue by delivering online advertising.[ii]

BUSINESS UNITS[iii]—Search and Personalization

Google first product and the key to its success is its search engine. Nevertheless, Google continue to expand its product portfolio. Other products now included are:

v Google WebSearch . Lets you search inside a website.

v Google Image Search . Lets you search for images.

v Google Book Search . Lets you search for books.

v Google Scholar . Lets you search for relevant scholarly literature

v Google Base . Lets content owners submit content that they want to share on Google web sites. Google Finance . Provides an interface to navigate complex financial information

v Google News . Gathers information from thousands of news sources worldwide

v Personalized Homepage and Search . Allows personalization

v Google Co-op and Custom Search . Google Co-op extends the power of Google’s search technology by combining its algorithms with the context, knowledge and expertise of individuals. Google Custom Search allows communities of users who know a lot about particular topics to build customized search engines.

v Google Video and YouTube . Google Video and YouTube let users find, upload, view and share video content worldwide.

Communication, Collaboration and Communities (Online Products)

Google wants to allow its users to share content so it has developed tools that have this ability.

v Google Docs & Spreadsheets . Word-like and Excel-like products, offered by Google without any cost. Accessible with an internet connection and a web browser. Next year Google would see Presentations, a Powerpoint-like product. All of these lets you share the file with others.

v Google Calendar and Gmail . Google’s free webmail service combined with a free calendar that lets you share your events and post with others.

v Google Groups . Helps groups of people connect to information and people that interest them.

v Orkut . Enables users to search and connect to other users through networks of trusted friends.

v Blogger . Allows users to publish their blobs (weblogs)

Downloadable applications (Desktop Applications)

Google wants to bring essential applications to its users for free (e.g. antivirus, photo organizers, media players, office-like solutions)

v Google Desktop . Lets people perform a full-text search on the contents of their own computer.

v Google Pack . Free collection of safe, useful software programs from Google and other companies that improve the user experience online and on the desktop. It includes programs that help users browse the web faster, remove spyware and viruses and organize their photos.

v Google Toolbar . Search box to web browsers.

Google GEO—Maps, Earth and Local

Google wants to provide geographic information at all levels.

v Google Earth . Lets users see and explore the world from their desktop.

v Google Maps . Helps people navigate map information (i.e. MapQuest competition).

v Google Sketchup . 3D modeling tool.

Google Checkout

Google Checkout is a service for users, advertisers and participating merchants that provides a single login for buying online and by helping users find convenient and secure places to shop when they search.

Google Mobile

Google Mobile lets people search and view both the “mobile web,” consisting of pages created specifically for wireless devices, and the entire Google index, including popular products like Image Search. Users can also access a variety of information using Google SMS by typing a query to the Google shortcode. Google also offers Google Map, Blogger and Gmail Mobile.

Google Labs

Google Labs is the tech lab where google creates all its new products. Users can try prototype versions.


Google generates revenue primarily by delivering relevant, cost-effective online advertising. Google has five channels to distribute its advertising:

v Online . With AdWords, an auction-based advertising program that enables advertisers to deliver relevant ads targeted to search results or web content. There are two channels inside the online space:

o AdWords: Delivers online ads inside Google owned websites. Online ads placed in the right side of the site, next to the search results.

o AdSense: Delivers online ads inside Google network (user owned websites). Google recruits million of users that use its AdSense platform to provide online ads in their website. The users get a share of the profit.

o Interesting enough Google doesn’t disclose separately its revenue from the Mobile effort and platform.

v Video . With Google Video Ads, user-initiated click-to-play video ads that run on its web sites and the web sites of its Google Network members.

v Television . With Google TV Ads, an automated online media platform that schedules and places advertising into TV programs.

v Radio . With Google Audio Ads, an automated online media platform that schedules and places advertising into radio programs.

v Printed Media . With Google Print Ads, a web-based marketplace for placing ads in print media.

Google derives most of its revenues from fees Google receive from its advertisers through its AdWords and AdSense programs.[v]

[i] Google Inc SEC Fillings (10K – Feb 2007)

[ii] Reuters

[iii] Google Inc SEC Fillings (10K – Feb 2007)

[iv] Google Inc SEC Fillings (10K – Feb 2007)

[v] Google Inc SEC Fillings (10Q – Oct 2007)