The Google Economy

Google has come a long way; from one of the Internet search engine to the worlds most popular search engine. It is preferred over search engines which are one among the pioneers of the search engine such as AltaVista, Infoseek, Netscape and Lycos.
Google piggyback on its innovative strategy to generate revenue by placing advertisements on sites which contain information related to those ads has indeed made Google highly profitable. The revenue model, almost since beginning, has been successful in giving its competitors a run for their money. In a short span of time, Google has become the best search engine by eating into the market share of Yahoo AltaVista, Infoseek, Netscape and Lycos.
Google always focused on product development which is user friendly and offers great customer experience. No wonder, Google, since inception came up with innovative ideas like Blogs, AdWords, video search and many other features on its search engine, which offered great user experience. It also helped, Google developed an emotional character that transcends cultural, geographical and language barriers. This inherent strength of Google in initial days helped survive in industry which was dominated by industry power house like Yahoo and Microsoft and later on helped it emerge as the winner. Google has focused on its strength by constantly projecting solutions to problems first rather than making money.Google hasThe BirthThe beginning of the story, Google started when Sergey Brin and Larry Page were doing their Ph.D. at Stanford University in computer science, as a part of research group called MIDAS (Mining Data at Stanford). Sergey Brin, with his Professor Rajiv Motwani started experimenting on finding ways to extract information from large chunks of data. Larry Page, at the same time spent time with the search engines (Altavista, Yahoo etc.) on Digital Libraries Project to find how they analyzed data.
Sergey Brin and Larry Page, after teaming up started downloading the web onto his desktop and even devised a method he called PageRank that would assign priority to websites with quality links. The PageRank, going forward would be backbone of the search engine Google.
In 1997, Page developed a primitive search engine called BackRub which was later renamed Google. The duo left Stanford University in the fall of 1998 moving their search engine to a nearby garage. On September 07, 1998, they established the Google Inc. The duo started experimenting on the Google’s web design to make it look more polished with high speed.
The Early DaysThe search engine became quite popular through word-of-mouth, e-mails and instant messages. In 1998, PC Magazine had chosen Google as the top 100 web sites. By 2001, Google was on its way to become a lexicon in the dictionary continuing to offer 100 million searches per day making it one of the top notch quality services to people across the world.
Google started with difference and positioned it as no-nonsense search engine. Google, unlike traditional search engines which place search ads mixing them with search results to make money, started delivering accurate results to the keywords placed in search. They found the idea of placing ads in the site more commercialized and will ultimately dilute the main purpose of the search engines.
In Search of Revenue ModelThe duo realized that only great product will not generate revenue they have to work on the revenue model. But at the cost of revenue generation they were not in favor of compromising on the search results quality. The duo after much brainstorming with Google team finds out a source to earn revenues. Google develop its business around two revenue streams – online advertising and search services. Google has been generating enough revenue from its AdWords, AdSense and Gmail service. The revenue model was well received by the viewers and the users.
The difference between Google and Yahoo is the revenue factor. Yahoo gets its revenue from Yahoo mail, ads, and some other features where as Google gets almost 85% of its revenue from ads. Google’s success has incited Microsoft, AOL and Yahoo to develope their own commercial search offerings
Google – More than a Search Engine
In early days of search engine growth when most of the online search engine companies spent a lot of money on marketing to build their brands, Google, focused solely on building a ‘better’ search engine. Everything Google did from the development of advanced technology to the design of user interface was focused on delivering the best search results. The effort to develop a better search engine help Google develop a brand.
When Google entered the online search market, Yahoo was the market leader. Their persistent efforts towards that objective proved fruitful as, in a span of five years, Google placed itself ahead of Yahoo in the search engine market. In 2002, Google pioneered the concept of AdWords and AdSense, and thus created a sensation in the field of online advertising.
Now, Google is much more than a search engine, it offers various other features for its users. List of the services which Google offers to its users apart from the search engine are:
Google Desktop : Search and personalize your computerGoogle Earth : Explore the world from your computerGoogle Finance : Business info, news, and interactive chartsiGoogle : Add news, games and more to the Google homepageImages : Search for images on the webGoogle Maps : View maps and directionsGoogle News - now with archive search; Search thousands of news storiesGoogle Scholar : Search scholarly papersGoogle Video : Search for videos on Google Video and YouTubeGmail : Fast, searchable email with less spamGroups : Create mailing lists and discussion groupsOrkut : Meet new people and stay in touch with friendsPicasa : Find, edit and share your photosReader : Get all your blogs and news feeds fastSites : Create websites and secure group wikisGoogle Talk : IM and call your friends through your computerGoogle Translate : View web pages in other languagesGoogle YouTube : Watch, upload and share videos
Google is increasing its revenues with introduction of new features.
Google – growing with Strategic Partnerships and AcquisitionGoogle has served various strategic partnerships with companies like Yahoo!, AOL, Earthlink, and Ask Jeeves. The strategic partnership in place, its ad business was showing signs of good growth.
Read: Google built on Acquisition to know more about Google Acquisitions in past.
Google grew to such an extent that it was very tough replicating its network or business for its competitors. The constant innovation at Google is the real motive for its services.
ConclusionGoogle will remain the best and popular company both electronically and emotionally. The company employs brilliant mathematicians, engineers and technologists to tackle all the problems. The Google team, have developed a firm that doesn’t need any introduction or promotion. It has replaced Microsoft with its rapid pace of innovation and mantle of leadership. Google has placed itself in a special position in the hearts and minds of many people throughout the world.