Google Advertising: Google's Approach To Advertising

Improved Essays
There aren’t many companies in the world more popular and famous as Google. The technology giant has been successful in taking control of the Internet and the brand is so famous it has even entered the vocabulary as a specific word for searching information online.

But Google has been unique in its approach to advertising. Although the company makes most of its money through advertisements on its platform, the company itself can hardly be found on billboards and TV ads. What is this strategy all about and how has Google’s approach to advertising changed in recent years?

This article will look at Google’s successful business model, the benefits it enjoys from its unique business model and approach to advertising and the slight shift in its
…show more content…
Its business model has also had its quirks in the past. Before you can understand Google’s approach to advertising, it is important to understand the company’s business model a bit better.

The company was founded by Larry Page and Sergey Brin while they were studying for their PhDs at Stanford University. They both still have majority voting power in the company through a system called supervoting stock, although they don’t own the majority of the shares. The company went public in 2004 and it has reorganised its operations recently under a holding company called Alphabet Inc.

Google’s mission is focused on the idea of organising “the world’s information” and making “it universally accessible and useful”. The unofficial Google slogan has often cited to be “don’t be evil”. The company’s mission statement is a great way to understand its business model as well.

Unlike most companies, which charge people for their service, Google has always provided its search engine and the likes free of charge. The profits have been solely derived from its advertising platform AdWords, as well as through other ventures it is currently running. Some of its newest innovative ventures include the Google Class and Google
…show more content…
But as well as becoming the main source of revenue for Google, the system also provides benefits to many users.

AdWords has become one of Google’s most successful systems and helped the company take its advertising game on to a next level. Following the footsteps of AdWords, Google has also introduced advertising services such as the Google Advertising Professional Program and the Google Online Marketing Challenge.

AdWords started out with a monthly view, but it has since changed its revenue structure to accommodate separate business needs. The fee structure proved to be very successful because businesses began noticing the benefits of advertising with Google. As Internet use grew, the program has become even more beneficial for many companies.

Improving its own advertising strategy

Google’s owners didn’t feel inclined to do a lot of advertising at the start of the business venture. Much of the company’s own advertising has relied solely on the word of mouth model, whereas satisfied customers are expected to provide the company with more users. With more users, the company will also increase its attractiveness to companies who want to pay Google for advertisement

Related Documents

  • Improved Essays

    One of the most crucial influences on Google’s dominance and competitive edge is the learning curve, since they are the original innovators and one of the first search engines, users have already become familiar with the engine and do not wish to change because of overall satisfaction along with the switching cost. Another major component to their strategy is the company’s involvement in other industries that can create benefits for the company from economies of scope. If we take a look at the other industries and fields that Google is involved it, it quickly becomes evident how they are all related. Take Google Ventures as an example. This is a subsection of Alphabet that invests in and acquires other technologies that have to do with user information.…

    • 1965 Words
    • 8 Pages
    Improved Essays
  • Great Essays

    Google gained its popularity and trust from their simple, clean and fast search machine. Google delivers their customers only the results that they want to see to make sure the information is useful. What are Google business strategies? Based on Porter’s model, Google uses differentiation strategy, with intensive growth strategies of market penetration and product development. Google made their products or services different from and more attractive than those of their competitors.…

    • 1240 Words
    • 5 Pages
    Great Essays
  • Superior Essays

    Google believes in innovation and creating products that users love instead of spending on traditional television ads or print ads. The first step Google took towards its transformation consisted of recruiting executives from creative agencies to help spread the word of Google’s products and offerings in 2007. All of Google Creative Lab (GCL) members were motivated by making a positive difference in the world by promoting Google’s free products. Google collected their revenues mainly from its Internet strategies including search-related advertising and other focus areas. Google started to take brand management more seriously and created a plan to communicate the company philosophy to its users in an effective way.…

    • 1064 Words
    • 4 Pages
    Superior Essays
  • Improved Essays

    Google Plus Case Study

    • 734 Words
    • 3 Pages

    Use keywords for searches You can search Google Plus using keywords related to your industry, brand, concrete product or service etc. It will allow you to find all the content shares and related comments and to track changes. To make it more convenient Search Engine offers you a tool to save your search, so that you do not need to create it once again. Google Plus is a rapidly growing social media. It is still not that much wide-spread as Facebook or Twitter, but we recommend you to pay attention to this network as Google services more and more influence our lives.…

    • 734 Words
    • 3 Pages
    Improved Essays
  • Great Essays

    Google Case Study: Google

    • 1301 Words
    • 6 Pages

    It is achieved through uniqueness and innovation. Market saturation, market improvement, and product improvement play a major role in their growth strategy. Market saturation is where they have saturated the market in the United States. Google is no doubt the leader in the United States market. They continue to come up with different technology to attract new users that why they are growing so faster than the U.S. competitors (Vise, 2006).…

    • 1301 Words
    • 6 Pages
    Great Essays
  • Improved Essays

    It allows Google to earn lots of profits which helps it to invest money in other businesses. B: Huge Revenue from Advertising: Google’s major source of income is from advertising C: Android and Mobile Based Technologies: Google has developed Android based operating system which is commonly used in the developing countries. b. Samsung: A: Heavy investment in R&D: Samsung has invested a lot of money in R&D over the years (in fact one of the highest in the industry). It has led to a lot of patents in the name of Samsung. B: Innovative Design: Samsung offers a lot of design unlike its competitor…

    • 2033 Words
    • 9 Pages
    Improved Essays
  • Great Essays

    Google Inc Case Study

    • 1070 Words
    • 5 Pages

    It is because Google is best in providing their employees a better environment, benefits, salary, and so on. Google Inc. is proactive in giving their employees training and motivation. Woking for Google come with many benefits that other companies cannot provide, such as provides free haircuts, karaoke, free breakfast, transportation and the list goes on. Google Inc. put employee’s happiness as their first priority by offering lots of benefits working for them. Google make their employees happy because of having a better environment working in Google, employees can gain a strong motivation and work hard for them.…

    • 1070 Words
    • 5 Pages
    Great Essays
  • Improved Essays

    Google Analytics Essay

    • 987 Words
    • 4 Pages

    • Data Activation- helps in making smarter decisions as it allows businesses to seamlessly activate their data to improve marketing campaigns and experiment with new channels and content. ANALYTIC SOLUTIONS Google Analytics provides analytics solutions for small and large businesses. Analytics premium and Adometry by Google are marketing solutions for large businesses, which are paid analytics services. Small businesses usually use free Google analytics solutions and Google tag manager to gain the actionable insight from the data. Analytics for mobile apps is also available to measure the performance of the mobile apps.…

    • 987 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    With Alphabet, Google founders have conveyed their intentions to bring about more clarity in their style of work. This change will introduce much-needed transparency among the shareholders. There are precedents supporting this: In April 2015, Amazon.com Inc (AMZN) was successful in winning investors’ confidence when it started reporting its numbers separately for its Amazon Web Services (AWS) segment. The result was seen in an immediate price rise in its stock. (See related: How Does Google Make Its…

    • 810 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    Google Goords Case Study

    • 1376 Words
    • 6 Pages

    The value proposition for Google PLAs is: They’re more than a text ad – they show users a photo of your product, plus a title, price, shop name and more. These ads give users a strong sense of the product that you're selling before they click the ad, which gives you more qualified leads. The difference for the advertiser with respect to the additional value provided is clearly evident. With Google PLAs, the additional features add considerable value to the ad posted by the advertiser. How Google Ads work Google AdWords displays ads based on the search terms entered by the user.…

    • 1376 Words
    • 6 Pages
    Great Essays

Related Topics