Google's Biggest Gamble

Googles BIGGEST GAMBLE 15-Years in the Making The Future of Google You Search Analytics Maps Google+ Docs Gmail Goggles Google began as a straight forward search engine focused on speed and accuracy. Once the company started picking up steam they Google Database transitioned their business model to ADV HERE Targeted Advertisement FOR YOU become an advanced advertising platform. US Ad Spend in Millions Search Display Ads Video Total 35000 30000 25000 20000 15000 10000 5000 2006 2007 2008 2009 2010 2011 Every product offered by Google is maintained for the purpose of acquiring an audience, then storing as much data about each audience member as possible to display targeted advertisements. Google has done so well at this they owned 43.5% of all online ad sales in 2011, worth approximately $18.2 billion. Home I Product GuidesI Cell Phones I Google Purchases Motorola Mobile August 15, 2011 08 26am EST O 200 Comments With the purchase of Motorola Mobile we can now make a very educated guess as to where Google believes their future lies: Mobile Advertising. The world is quickly moving to mobile, and Google has been doing everything they can to be play a key role in the transition. ndroid mobile operating system and build up its patent The Apple Smartphone Business Plan *All prices below are estimates with the profit split evenly between the manufacturer and the retailer: IPhone 4 Productlon AT&T Retall Store Your Purchase Sale Cat&t Cost $468 Cost $750 |Contract eat&t Cost $187 Cost $619 (Cost + $18/month for 24 months) Cost $200 +24m Contract Apple makes an estimated $281 from a straight sale or $432 from a contract profit share. The Google Smartphone Business Plan Q Since competing with Apple head-on seems foolish (even for Google), chances are they will do what they have always done: re-invent the wheel, making it faster, lighter and cheaper. Google Mobile Production Your Purchase Cost $200 Cost $Free - $200 Location Specific Ads MAIL PIZZA HUT Azza Hut COME INSIDE FOR 50% OFF A LARGE PIZZA 1/5 Geo-Located Push Advertising Google is an advertising company. By combining the products Google already has with mobile we can expect to see highly targeted advertisements based on who we are and what we're doing and more importantly where we are. GOOGLE HISTORY TIMELINE DATE Stock Value MOBILE ADVERTISING MARKET SHARE O- Company Info O- Product Related O- Acquisition $= NA Larry Page and Sergey Brin 1995 2% 1% 1% 1% meet at Stanford $=NA They create a search engine called Back Rub 1996 14% 1997 $=NA 15% Change name from BackRub to Google 1998-Sept Google files for incorporation 1999-June Receive $25m in funding 2000-May 10 new language options 2000-June $=NA =NA 73% $=NA $=NA Partner with Yahoo. 2000-Sept $=NA I Yahoo I Asfonic I iad (apple) I Google (admob) Total languages reach 15 2000-Oct Adwords is launched 2000-Dec I Jiwire $=NA 14 Others Inmobi $=NA Google toolbar is released GOOGLE STOCK VALUE 2001-Feb $=NA Acquisition of Deja.com's Usenet Discussion Service -GOOGLE - NASDAQ* 2001-July $=NA $800 Launch Image Searc 2001-Sept $=NA $700 Acquires Outride 2001-0 ct $=NA $600 Partner with Universo Online (for Latin Americans) $=NA $500 2002-Feb First hardware release - Google Search Appliance ------------------- E Adwords adds cost-per-click pricing $400 $300 2002-May $ENA Launch Google Labs $200 $=NA 2002-May Partnership with AOL 2002-Sept $100 $=NA Google News launched 2002-Dec $=NA a/5/2004 a/5/2005 a/5/2005 a/5/2007 a/5/2008 a/5/2009 a/5/2010 Froogle launched 2003-Feb $=NA * The NASDAQ line is purely a representation of the stock market trend over the same time period. The actual NASDAQ values are not congruent with the legend. Aquire Pyra Labs (creators of Blogger) 2003-Apr $=NA Google Grants - ads for non-profit 2003-Apr $=NA MOBILE AD Acquires Neotonic Software ---------------------------- Acquires Applied Semantics SPEND (2003-Sep $=NA Google Acquires Kaltix (IN MILLIONS) 200-Oct $=NA Acquires Neotonic Software ---------------------------- Acquires Genius Labs 2009 2010 2011 2012 2003-Dec $=NA Print Launched (Book Search) Messaging $228.8 $327.3 $422 $476.7 2004-Feb $=NA index hits 6 Billion items Display $91.4 $202.5 $334.5 $489.1 2004-Mar $=NA Google Local launched Search $83.2 $185 $295.1 $451.4 2004-May $=NA Acquires Ignite Logic Video $12.6 $28.3 $50.8 $84 2004-Jul $=NA Acquires Picasa Total $416 $743,1 $1102.4 $1501.3 2004 -Aug $=102.37 Google goes public at 85/share 2004-Sep $=129.6 Acquires ZipDash (2004-0ct $=190.64 SEARCH ENGINE Mic Desktop Search launched -------------------------- MARKET SHARE Google Scholarlaunched -------------------------- Google SMS la unched $=190.64 2004-0ct Acquire Keyhole - which is to become Google Maps 80% ------------------------- Acquires Where2 70% (2004-Nov $=181.98 60% index hits 8 Billion items (2005-Feb $=187.99 50% Google Maps launched 40% 2005-Feb $=187.99 1.1 Billion images indexed $=180.51 309% 2005-Mar Launch code.google.com 20% 2005-Mar $=180.51 10% Acquire Urchin 2005-Apr $=220 My Search History launches $=220 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2005-Apr Site Targeting through Google • Yaho0 MSNO Bing• Adwords (2005-Apr $=220 Google Maps adds satellite view $35b GOOGLE REVENUE ----------------------- Google Local goes mobile $30b 2005-May $=277.27 Release Blogger Mobile ----------------------- iGoogle launched $25b 2005-May $=277.27 Acquires Dodgeball 2005-Jun $=294.15 $20b Google Earth unveiled ----------------------- Personalized Search released ----------------------- $15b Mobile Web Search released 2005-Jul $=287.76 $10b -Equres kegwireless Acquires Current Communications Group 2005-Aug $=286 $56 Google Talk launched 2005-Aug $=286 Acquires Android $0 2005-Sep 2001 2002 2003 2009 2010 $=316.46 Google Blog Search goes Live 2007 2005- ct $=372.14 I Revenues Total Advertising Revenues Google Reader launched $=404.91 Google Analytics is released $=404.91 (2005-Now EMPLOYESS BY FUNCTION 2005-Nov GENERAL AND Acquires Skia ------------------------- Acquires Akwan Information Technologies ADMINISTRATIVE 14.8% 2005-Dec $=414.86 Google Transit launches for Portland Oregon SALES AND MARKETING ------------------------- 37% Gmail for mobile launches 2005-Dec $=414.86 Acquires AOL ------------------------- Acquires Phatbits ------------------------- Acquires allPAY GmbH ------------------------- Acquires bruNET GmbH 2006-Jan $=432.66 Acquire dMarc - digital radio 2006-Feb $=362.62 RESEARCH AND DEVELOPEMT Chat is introduced into Gmail 37.5% 2006-Feb $=362.62 OPERATIONS Acquires Meas ure Map (2006-Mar $=390 10.7% Google Finance launched 2006-Mar Acquire Writely - later becomes Google Docs $=390 ------------------------- Acquires Upstartle ------------------------- EMPLOYESS OVER TIME Acquires @Last Software 2006-Apr $=417.94 2004 3,021 Acquires Orion 2006-May $=371.82 2005 5,680 Google Trends launched 2006-Jun $=419.33 Google Checkout announced 2006 10,674 2006-Jun $=419.33 Acquires 2Web Technologies 2006-Aug $=378.53 Acquires Neven Vision Germany GmbH 2007 16,805 2006-0ct $=476.39 2008 20,222 Acquire Youtube.com ------------------------ Acquire JotSpot - later becomes Google Sites ----------------------- Acquires VouTube for $1.65 Billion 2009 19,835 ------------------------- Acquires JotSpot 2010 24,400 2006-Dec $=460.48 Release of "Patent Search" (over 7m patents) $=460.48 2006-Dec Acquires Endoxon TOP 100 SEARCHES OF 2009 2006-Apr $=417.94 launch Google Calender 2007-Jan $=501.5 Acquires Xunleic ankoare 2007-Feb $=449.45 Tpmes e0osseh sars Mmlars soyou thi youcancance season Sepisode cran teet e nortn korea missie hawaikennre Acquires Adscape 2007-Mar $=458.16 ryovee menae artie lange and joe bUck KKOTS te oe500rgeneus music in the park san jose 2009 nornt the hot chick Acquires Trendalyzer enti oe Ming environment reģents june 2009 2007-Apr jon and kate announcement Clobal regents $=471.38 Acquires Tonic Systems ------------------------- anet contreras întegrated algebra regents. Acquires Marratech Reror ------------------------- Acquires Doubleclick for 3.1 Billion 2007-May $=497.91 Release Google Gears SAnetn 200-Feb $=449.45 Fastest Rising Fastest Falling Search Terms of Acquires Adsca pe 2007-Mar $=458.16 Acquires Trendalyzer Search Terms of 2010 2010 2007-Apr $=471.38 Acquires Tonic Systems ------------------------- Acquires Marratech ---- Acquires DoubleClick for 1. chatroulette 1. swine flu 3.1 Billion 2. ipad 2. wamu $=497.91 Release Google Gears 2007-May 3. justin bieber 3. new moon 2007-May $=497.91 4. nicki minaj 4. mininova Acquires GreenBorder 2007-Jun $=522.7 5. susan boyle Partnership with Salesforce.com 5. friv $=522.7 Acquires Panoramio 2007-Jun 6. mухer 6. slumdog millionaire Acqu A 7. katy perry 7. circuit city Acquires --------------- - Acquires Zenter 8. twitter 8. myspace layouts $=510 2007-July 9. michael jackson Acquire Postini ---------- ----- Acquires GrandCentral 9. gamezer Acquires Image America 10. facebook 10. national city bank 2007-Sep $=567.27 Presently for Google Docs launched $=567.27 Acquires Zingku $=707 2007-Sep Google's Philosophy 2007-0ct Acquires Jaiku 1 - Focus on the user and all else will follow. 2007-Nov $=693 Android is announced 2 - It's best to do one thing really, really well. 3 - Fast is better than slow. ----------. OpenSocial is announced 2008-Mar $=440.47 4 - Democracy on the web works. Acquire DoubleClick $=473.75 5 - You don't need to be at your desk to need an answer. 2008-Jul Acquires Omnisio 6 - You can make money without doing evil. 7- There's always more information out there. 2008-Sept $=400.52 G1 phone is built -------- --------- 8 - The need for information crosses all borders. Chrome is released 9 - You can be serious without a suit. 2008-Sep $=400.52 Acquires TNC 10 - Great just isn't good enough. 2008-Nov $=292.96 Google Flu Trends launched (2009-Feb $=337.99 Google's Design Principals Google Latitude launched -------------------------. Google Translate launched 2009-Mar 1- Focus on people - their lives, their work, their dreams. 2 - Every millisecond counts. $=348.06 Google Voice is released. $=348.06 (2009-Mar 3 - Simplicity is powerful. 4 - Engage beginners and attract experts. 5 - Dare to innovate. interest-based advertising 2009-Aug Acquire O -------- $=461.67 --------------- Acquires On2 6 - Design for the world. (2009-Sep $=495.85 7 - Plan for today's and tomorrow's business. 8 - Delight the eye without distracting the mind. 9 - Be worthy of people's trust. Acquires reCAPTCHA $=583 Acquires AdMob ------------ ------ Acquires Gizmos (2009-Nov 10 - Add a human touch. Acquires Teracent $=619.98 2009-Dec Acquires AppJet (EtherPad) Random Facts (2010-Jan Introduce Nexus One $=529.94 Coogle 2010-Feb $= 526.8 Google Buzz on gmail and mobile $=526.8 Acquire Aardvark - tạp into network of contacts/friends ----------------------- Acquires Aardvark ---------------------- Acquires reMail Google's unofficial company slogan is 2010-Feb "Don't be evil". Google is extremely vigilant in keeping qulet about the actual 2010-Mar size and scope of their data centers, but the company Is $=567.12 Acquire Picnik (2010-Mar $=567.12 known to have at least 12 Google Apps Marketplace major data centers In the US alone Including Project 02; which is the size of two football fields sporting cooling towers four stories high. 2010-Mar $=567.12 Acquire Picnik ----------------------- Acquires DocVerse 2010-Apr $=525.7 The first Google storage box (for the search engine then called BackRub) was hand- built from Lego. It was the cheapest way to bulld a Acquires Episodic ------------------ Acquires PlinkArt Acquires Agnilux --- - --- Acquires Lab Pixies ------ - Acquires BumpTop 2010-May $=485.63 Announce Google TV for Android and Chrome custom box to hold the ten (2010-May $=485.63 Acquires Simplify Media --- Acquires Ruba.com hard drives needed for their 40glg of storage (a signlficant amount back then). 2010-Jun $=444.95 Acquires Invite Media 2010-Jul Acquire Metaweb - open database of things in the world $=484.85 ---------- ---------- Acquire Slide - social technology company- Acquires ITA Software ---------------------- Acquires Metaweb Google uses goats to cut the grass at their main complex Instead of gas-powered lawn mowers. 2010-Aug $=450.02 Acqu Lawire.-- Acquires Instantiations ----------------- Acquires Slide.com Acquires Jambool ...Acguires Like.com Acquires Angstro. Acquires SocialDeck, Inc. 2010-Sep Acquires Quiksee Acquires Plannr 2010-0 ct $=525.79 ----- - --- $=613.7 Acquires BlindType $=593.97 Acquires Phonetic Arts ------------------------- Acquires Widevine Tecnologies 2010-Dec Google has their very own authentic Tyrannosaurus Rex skeleton named"Stan". 2011-Jan $=600.36 Acquires eBook Technologies ----------------------- Acquires SayNow ----------- ---- Acquires flick Gesgle YOU Google was the first company to use a cookle which doesn't $=586.76 Acquires 24------ IS WATCHING Acquires BeatThatQuote.com 2011-Mar expire until 2038, technically Illegal at the time. The laws for .------------------------ Acquires Next New Networks Acquires Green Parrot persistent cookles have since been changed. Pictures 2011-Apr $=544.1 Acquires PushLife --------------- --- Acquires TalkBin $=529.02 Google retains all data collected Indefinitely, but has openly rejected the suggestion they share any Information at the request of government agencles. 2011-May Acquires Sparkbuy (2011-Jun $=506.38 The Google toolbar at launch updated Itself automatically Acquires PostRank Acquires Admeld -------------- ---- Acquires SageTV Google without notification or Google $=603.69 201-Jul confirmation, which was and Acquires Punchd still is illegal. ..---- --..Acquires Fridge Acquires Pittpatt $=535 Google saves coples of every webpage it Indexes. Even if you remove your website Google will likely have a copy of It saved on their machines. 2011-Aug Acquires De almap Acquires Motorola Mobility - 12.5Billion silver oak www.silveroakcasino.com casino SOURCES: http://www.eMarketer.com http://google.com http://googlemobileads.blogspot.com http://finance.yahoo.com/q/hp?s=G0OG