Google's Marketing Strategies
Google, Inc. was a company founded by two Stanford University computer science graduates that initially sought to order and catalog all of the information available on the internet through their search engine. This simple engine with the clean interface would become the premier internet search engine in a relatively short amount of time, surpassing the offerings of Microsoft, Yahoo and many others. The web search engine would become so popular, in fact, that it would inject itself into the national psyche, becoming a verb that we all use today to explain how we search the internet. Even young children know how to "google" something on a computer. Today this company offers everything from the search engine, to an email service, to YouTube videos and even mobile phone apps. As of 2011, this now publicly traded company, had revenues of nearly $38 billion and a gross profit of over $24 billion (Google.com). This astonishing growth could not have been achieved without Google's strong marketing strategies and customer relations. Google has effectively revolutionized the marketing world, not just for themselves but for every company that uses the Internet in any way. When Google offers a new product, whether it is a web-based social media site or a new app for their Android operating system, they have a built-in following that hangs on their every move and eagerly embraces the change they are offering.
Google as Marketing Partner
Most people who use Google are accustomed to their more popular offerings, such as their web search, Gmail, or an Android phone. They use these programs and devices to access the things they are looking for on the web, often available from another company aside from Google. For instance, a Google search may be the first step whenever someone is about to make a major purchase, a car, television, or any other product or device. They will view the results of their Google search on their home computer or smart phone and then click on the link that most closely resembles the product they have been seeking. What most people may not realize when they do this is that the companies whose site they have accessed may now owe Google money for directing a new customer their way.
There are two ways in which a company can attain a prominent ranking on the list of sites that Google returns via a user-generated search. First, they can integrate targeted search words into their website so that, when Google's crawlers search the site they will return words that are frequently input into search engines. This type of search is known as an organic search and about 85% of users click on these ads (Fox, 2010, p.3). The other way to reach users is to simply pay Google to return a particular site when certain words are searched. This is supplied by Google's AdWords program, a pay service that elevates certain sites on the search results list when certain terms are searched. It is estimated that 88% of all online dollars are spent on paid search result (Fox, 2010, p.3). For Google, advertising comprises approximately 96% of its $38 billion in revenue ("CCI," 2012).
There is a clear disparity between what companies are willing to pay and what they believe will generate notice on the internet and what sites people who view the results are actually interested in navigating towards. Companies are paying Google an exorbitant amount of money, to the tune of billions of dollars every year, for a service that does not give them any better chance of attracting notice from potential customers. There are most likely better alternatives to spending this money with Google, like simply changing a website to be more relevant in their search listings. Companies appear reluctant to do so however, perhaps, in part, because they still believe that Google is the key to success on the internet. This seems to be a majority opinion. Google has positioned themselves as the mediator between company and customer, a portal through which one must go to reach the other.
The evidence of sparse results for AdWords notwithstanding, Google continues to rake in money from advertisers, primarily because these same companies trust Google. The customers who come to their search engine and other internet offerings also place a tremendous amount of trust in Google, a rarity among large corporate entities. Google has earned this trust over the years by providing both corporate advertisers and customers with exactly what they are looking for: a large audience for companies and accurate, honest information. Most importantly for consumers, almost...
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