When two Stanford students began a research product in 1996, I don’t think either of them had any idea of what they were getting themselves into. Those two computer science students Larry Page and Sergey Brinn created one of the most profitable business in the world and the most powerful search engine “Google” (Kerin, R., Hartley, S., & Rudelius, W. (2011).). Google is a misspell of the word “googol, which is 1 followed by 100 zero’s. They created a search engine that would better help the user by ranking the websites based on the number of times the keywords were displayed in the website. Page and Brinn moved from a dorm room, to a friend’s garage to Palo alto offices and to their current home which is Googleplex in Mountain View, California (Kerin, R., Hartley, S., & Rudelius, W. (2011).). In 2000 google began selling advertisements as a form of revenue. They are now a fortune 1000 company, generate 21 billion in annual revenue and have over 20,000 employees (Kerin, R., Hartley, S., & Rudelius, W. (2011).). They wouldn’t be able to do all that without their great marketing and advertising strategies.
The revenue Google generates is placed on specific web pages or next to search results. Google never sells placement in its search results (Kerin, R., Hartley, S., & Rudelius, W. (2011).). You can tell which results are ads and have been paid for by their company. These ads usually say sponsored or AD next to the result. This ensures that a visitor to the website knows which ad’s have been paid for and which are just generated results. This style of advertisement if very effective and measurable. For instance you may place an ad in the newspaper, but you may never know if that ad paid dividends because it is not measurable. With Google, the Ad’s are measurable because you can track how many people your advertisement reached and how it influenced them. You can track how much money is being spent on the ad’s and which particular customer the ad reached and what they did once they received the ad (Kerin, R., Hartley, S., & Rudelius, W. (2011).). I think this is very effective because if you are using this model and you are not seeing dividends then maybe you are not targeting the right audience. You then can change the keywords or add to them to target more and different types of audiences. This way you can specifically see where the marketing money is going and how it is affecting your revenue. Google has developed two different business tools to help with advertising. These tools are AdWords and AdSense (Kerin, R., Hartley, S., & Rudelius, W. (2011).).
AdWords is what helps advertisers place ads on their search-engine results. Advertisers create their own text, select target keywords and manage their own account. This allows advertisers to set their own target audiences and determine how much they want to spend a day many other key important factors in determining how to advertise their products (Kerin, R., Hartley, S., & Rudelius, W. (2011).). This is a really effective tool for advertisers because you can target an audience they may specifically be looking for your product. This customer may have not known about your company or been able to find it if it wasn’t for AdWords. For instance my stepfather is from NY and sells his white birch bark online for crafters and designers. He created a website and saw some interest from new customers but mostly just area people and word of mouth. But he then created an AdWords account to market his white birch bark and say orders almost double. He received orders from all over the United States and was able to double his profits. AdWords is a great tool for small business as well as large businesses (Kerin, R., Hartley, S., & Rudelius, W. (2011).). AdWords also levels the playing field for many small businesses because products may be targeted directly, whereas before they may have been to reach the customer. AdWords is more…