Information Technology Giant:

"Google" by Cesar Solorzano is licensed under CC BY-NC-ND 2.0

Google was the world most famous company that dominant the digital world, it was the foundation of the modern Internet development. It is one of the top five United States’ IT companies. Google has created the chain of their product to allow the users to stick with it. The core product of Google is Google Search Engine, it is the largest market share search engine on the internet which is 92.71% if in the entire world (Search Engine Market Share Worldwide, n.d.). The chain of Google’s products includes Google Drive, Gmail, Google Pixel, Google Chrome etc, also plays the remarkable role in the digital era globally.

"Google Campus" by AndyRobertsPhotos is licensed under CC BY 2.0
Figure 1 “Google Campus” by AndyRobertsPhotos is licensed under CC BY 2.0

 

What is Google?

Google is the search engine company founded by two Stanford University student Larry Page and Sergey Brin in California in September 1998 (Dai, 2007). The purpose of creating Google was “organize the world’s information and make it universally accessible and useful”, and the unofficial slogan of Google is “don’t be evil” (Dai, 2007). It is undeniable that Google does successfully complete the purpose of organizing the information and make it easy to access and useful for everyone in the world. In the main page of Google, it has designed as clean as possible. Google does not put any non-necessary information but only a search box and the Google logo, whereas their competitors has a different strategies, Yahoo has put lots of information such as news, weathers, online shopping information, and Bing will show some trending news of the day. In the website Stat Counter, it shows that Google has the highest market share world-widely in 92.71%, and following with Bing in 2.73%, Yahoo with 1.47% (Search Engine Market Share Worldwide, n.d.).

Google's main page
Figure 2 Clean and only the search box
Yahoo's main page
Figure 3 ads and additional information

 

What is the business model of Google?

In year 2015 Larry Page established Alphabet Inc. and announce Google as the subsidiary of it. The annual revenue of Google in 2019 was 160.74 billion US dollar, which these revenues came from the two major product of Google, which is the search engine and the AdWords system (Clement, 2020). These two-system worked together to creates the largest benefits. The AdWords programme is an advertisement system that matched the keyword that users typed in the search engine and generated the relevant website or product for the search engine users.  The business model of Google is hidden revenue business model, the hidden revenue businesses means the users does not pay to Google’s services, the third-party businesses does (Fox, n.d). Since Google has the largest market share of the search engine, Google decided to make good from this advantage, which is the Google AdWords. The Google advertisement system has provided a platform with largest market share for the advertisers who needs more exposure on the internet. The advertisers will pay for Google to make their content be expose on pop-up advertisement or the result of the search engine when the users search the keywords (Uqbah, 2016).

 

Figure4
figure 4 Status of Market share of Search engine

How Search Engine and AdWord Generate Revenue for Google

The search engine marketing is to increase the advertiser content visibility in the search engine results page. According to the article The Use of AdWords, it mentions the first page of the search engine result is the most valuable place because most of the users lost interest after two or three pages of results ( Wiid & Rooyen, 2018). Therefore, the first page of the results was the most valuable place for the advertiser to buy a place from Google to increase the exposure of the advertising content and generate more potential shoppers (Wiid & Rooyen, 2018). Besides the search engine marketing, the pay per click programmes may also generate revenue for Google if the advertisers’ content has been used. The same system has been applied in the YouTube system, the YouTube video may generate revenue depends on the amount of view, but the major revenue of YouTube video was based on the advertisement exposure before and between the video.

The advertiser paid Google to use the system of pay per click and cost per click, it is the revenue system. The advertiser will receive the following benefits:

  • The advertiser can easily deliver their content to the potential customers at the right time via the keyword match search engine, it efficiently targets the audience.
  • The flexibility of the search engine can instantly implement the keyword changes. The system can follow the user’s behavior and apply suitable changes of advertisement within few hours.
  • The users and advertisers has been targeted. Search engine will be based on the language and location and provides the suitable advertiser content.
  • The statistic are measurable. The system can track and analysis of the exposure and keyword uses for marketing purpose, it can correspond to the flexibility of the search advertising, the advertisers can changed a new keyword or optimize the content to maximize the revenue.
  • It can raise the brand awareness, the search advertising can lead the users to the brand website via the result generates from the search engine, the more exposure of the brand website can increase the brand awareness.
  • Lower cost than traditional media. Search engine is more affordable compared to other marketing communications such as TV channel and print media, it allows both large and small enterprises to has same chance to increase the exposure on the internet (Wiid & Rooyen, 2018).

 

What is Google’s place in the Social Ecology?

Scott Cleland from US Business magazine Forbes mentioned that

“Over the last four years, antitrust authorities have sanctioned Google more than any other company,” Clean claims; and over the last decade, Google in addition “has become the western world’s most pervasive serial property infringer.” (Savoia & Copeland, 2011)

Google has become the synonym as “search”, it represents Google’s the remarkable position in the internet era development.  Not only in the search engine phase, Google has also involved into entertainment industries. In the search engine industry, the major competitor of Google was Microsoft and Yahoo, and Baidu for China region who has banned Google (Investopedia, 2020).

For the entertainment phase, Google has obtained YouTube in 2006 with $1.65million U.S dollar, Google has officially involved into the entertainment media industry. The major competitor in the entertainment is the online video streaming companies such as Netflix, Vimeo, Walt Disney Company, Amazon, HBO and any other companies provides streaming services (Investopedia, 2020). The YouTube service has not only focus on the video streaming service, but it can also be related to the part of the social media services, YouTube even starts a new industry called YouTuber. YouTuber is the content creator who make videos and gain revenue based on the amount of the view. This system was same as the search engine system of Google. The pay per click may also apply to YouTube system and the advertisement system. Google embedded the advertisement in the video, which the advertisement will depends on the search history of the user’s YouTube account, which is the Google account, and provides customize advertising for the users.

Google has also joined the autonomous vehicle market. The company Waymo and owned under Alphabet Inc. Waymo’s main project was to create full self-driving car, Waymo has launched it since 2009 to reduce accident and reform the urban transportation (Investopedia, 2020). The major competitor of autonomous vehicle includes Uber, Tesla, Nissan, Honda, and others. In the competition of the autonomous vehicle it leads to the smart cities’ development.

Ecology map of Google's Competitors
Figure 5 Ecology map of Google’s Competitors

 

The Regulation

Since Google was the worldwide company, it has collects lots of user information. The user information is the most valuable data in the technology company such as Google (Eko, Anup, & Yao, 2011). Hence, Google must adapt to every different countries’ interest regulation in order to open the global market (Eko, Anup, & Yao, 2011). The United States government has set the political regulations to limits the usage of the user information for companies like Google and Facebook to have to be transparent that where the user data has been using. This information has been used to improve the algorithm of the AdWords system of Google (Eko, Anup, & Yao, 2011).

In China, Google has compromised to their principle” Don’t be evil” it blocked all the content that China government required them to do in order to expand their business area (Eko, Anup, & Yao, 2011). YouTube has been allowed to operate in China, however, Chinese government has the authority to control what kinds of content can show in the China region. Google compromised the censorship of Chinese government to allow the business to stay in China (Eko, Anup, & Yao, 2011).

"Internet Law" by Visual Content is licensed under CC BY 2.0
Figure 5 “Internet Law” by Visual Content is licensed under CC BY 2.0

How Google reshaped the Internet:

Google has redefined the word of “search” people will said Google it instead of search it (Halavais,2013). In this aspect, Google has successfully achieved their goal of their company which is” organize the world’s information and make it universally accessible and useful.” Google has provided the platform for all interest users an easy access way to get the information universally by a successful brand image and the complete product chain. The product chain has covered most of the essential interest goods, in entertainment, business phase. The major Google product AdWords has revealed the new commercial value, which the traditional media may not achieve. The AdWords system is the innovation between Google and the advertisers. It allows the enterprises, both large and small, to have the same level of exposure based on the Internet user’s information. Google has used the hidden revenue business model to provides their user a free service and charge the advertiser on the pay per click programme. Google has provided the customize advertising for the customer via this system. Since Google has the largest search engine market share world widely, it is necessary for Google to adapt to the internet regulations in every region. For example, in China, Google must follow the Chinese government censorship in order to expand the business. The business model in western or other democratic countries was different than the communist countries such as China.

"Smart City 2013" by FPA S.r.l is licensed under CC BY-NC 2.0
Figure 6 “Smart City 2013” by FPA S.r.l is licensed under CC BY-NC 2.0

Conclusion

As the United States top 5 information technology company, Google was the most successful one that has developed the modern digital era in different phases. It provides a platform for people to “google” the information, it gives the firms a more efficient way to put advertisement, it creates the new format of the entertainment, it provides many tools to make user experience more convenient. Google has stepped a bit forward for creating a smart city in the future.

 

 

 

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Reference:

Clement, J. (2020, February 05). Google: Annual revenue. Retrieved November 18, 2020, from https://www.statista.com/statistics/266206/googles-annual-global-revenue/?fbclid=IwAR2ov2iVD4KPTMhFpUmn5sSo80Q3ylUs_jzZS8vKQT-yVc9Drbz69K2unEI

Curwen, P. (2018). Google. Digital Policy, Regulation and Governance, 20(2), 191-194. doi:10.1108/DPRG-10-2017-0053

Dai, X. (2007). Google. New Political Economy, 12(3), 433-442. doi:https://doi-org.ezproxy2.library.usyd.edu.au/10.1080/13563460701485706

Eko, L., Anup, K., & Yao, Q. (2011). GOOGLE THIS: THE GREAT FIREWALL OF CHINA, THE IT WHEEL OF INDIA, GOOGLE INC., AND INTERNET REGULATION. Journal of Internet Law, 15(3), 3-14. Retrieved from https://search-proquest-com.ezproxy1.library.usyd.edu.au/docview/890552789?rfr_id=info%3Axri%2Fsid%3Aprimo.

Fox, G. (2020, June 07). Google Business Model – A Hidden Revenue Model. Retrieved from https://www.garyfox.co/google-business-model-explained/

 

Halavais, A. (2013). The engines. In Search engine society (pp. 5–31). Cambridge, UK ; Malden, MA: Polity.

Investopedia. (2020, September 16). Who Are Google’s Main Competitors? Retrieved November 18, 2020, from https://www.investopedia.com/ask/answers/120314/who-are-googles-goog-main-competitors.asp

Savoia, A., & Copeland, P. (2011). Entrepreneurial Innovation at Google. Computer, 44(4), 56-61. doi:10.1109/MC.2011.62

Search Engine Market Share Worldwide. (n.d.). Retrieved November 18, 2020, from https://gs.statcounter.com/search-engine-market-share?fbclid=IwAR0rvDSjtDN5VLaQ2zoRdcd5QmrIP7jWAfZ2nihNhshxEbrQ8KfGcySRqDg

Tennant, R. (2012). Becoming a Google Advertiser (1063559709 810306742 J. McDonald & 1063559710 810306742 K. McDonald, Eds.). In 1063559708 810306742 H. Jacobson (Ed.), Google AdWords For Dummies (3rd ed., p. Pt1). Wiley Indianapolis.

Uqbah, I. (2016). Google Business Secrets. Journal of Internet Banking and Commerce, 21(2), 1-2. Retrieved from https://search-proquest-com.ezproxy1.library.usyd.edu.au/docview/1826918010?rfr_id=info%3Axri%2Fsid%3Aprimo

Wiid, J. A., & Rooyen, N. V. (2018). The Use of AdWords – a Contributor or an Inhibitor of Marketing Success? African Journal of Hospitality, Tourism and Leisure, 7(4), 1-14.