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