Case Analysis 3
Thomas Edison State College
CASE ANALYSIS 3 GOOGLE 2
Google's business model is comprised of many different income generating sources. Google, Inc. is most well known for it's search engine with 96% of it's income being generated by advertising sales. Google has text only ads that appear next to their search results. These ads are targeted to consumers based on what they are searching for making these ads more appealing to the companies paying for them. These text based ads, AdWords, are targeted based on key words and companies bid on the use of these keywords through an auction based system. Most advertisers pay on a cost-per-click basis and are charged every time someone clicks on their ad. Google also has an AdSense program where web publishers share in the ad revenue that Google generates from ads placed on their websites. Google's acquisition of Double Click has allowed them to branch out into more visual advertising by selling banner ads. Google also acquired You Tube and generates income from selling ads on this website as well. Other sources of income other than advertising sales include licensing fees charged to corporations for search on their intranets or websites, licensing fees for using Google Apps document and spreadsheet software, and Google Checkout has fees charged on transactions at e-retailers. Google also has such products as Gmail mail program, Google+ social networking, Chrome internet browser and the Android operating system. All of the free services that Google offers are just more opportunities to offer advertising and generate more revenue for the company. Thompson, Peteraf, Gamble, Strickland (2012)
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