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Google business model

Anonim

As a brand that today is worth $ 67,000 million never invested in advertising? An interesting topic to analyze. We all wonder, where does Google win? How can it give us systems like analytic without charging us a penny?

First of all I want to bring a phrase from Gonzalo Alonso, CEO of Google for Latin America: “Google's mission is to organize the world's information and make it universally accessible… and we are not referring to what is already on the Internet, which is an important part, but the one that is not there yet, which is 80%. ”.

Google is undoubtedly a great idea and proof that with intelligence and courage you can completely change the universal ideas of marketing and so many more.

Sponsored links. These text boxes found on the right side of each search are intended to give the Internet user (future customer) a service or product related to the specific search they are performing.

This way of linking products and services with the customer is fantastic. These sponsored links, where Google makes money, differ from the so-called natural ones whose appearance is only due to a web positioning work (another topic).

Let's see the characteristics of this advertising and business model that Google raises.

  1. The amount of click is paid, not the appearance or size of the ad. If they do not click, Google does not charge. The cost of the ad is related to the amount of clicks, but especially to the keywords you want to use in the ad. For example, if my ad is found with the word "magazine" used by millions of people, it will have a different price if we position it with the word "Empanadas from Tucumán" which is not as requested.

Of course, this completely changes the known paradigms, the segmentation is not carried out by the usual values ​​such as sex, age, geographical location but simply by type of searches and products searched.

And the most “shocking” characteristic for big brands: In the sponsored links, the brand or company that pays the most does not appear above, but the one that has the most clicks.

This point shows the tendency to “change the world” of Google: “we seek satisfaction and we are honest with our user”.

Again applause for Google.

Google business model