Few months ago, Google observed its 22nd birth anniversary. On September 4, 1998 Google was founded by Larry Page and Sergey Brin. The first idea of Google was originated in January 1996 when the founders were pursuing their PhD after UG at Stanford University, California. They were researching on a project of providing large data on a platform.
“Google” name originated from “Googol” – a mathematical term that refers to the number represented by a 1 followed by one-hundred zeros i.e (10 ^100) when it was misspelt and later resulting in the name Google. Its first iteration was named “backrub” algorithm in 1997. They renamed their search engine google.
Google LLC is an American multinational company known for its internet related services and products. It captures online advertisement technologies, a search engine, cloud computing, software and hardware. It is considered one of the big 5 technology companies in the US information technology industry. Google indexes billions of web pages to allow users to search for the information they desire through use of key word and operators.
As per the reports revealing last year, the Alphabet (Google’s parent firm) Q4 2019 earnings were 46.75 billion dollars in revenue. A major part of Google’s 162-billion-dollar revenue in 2019 came from its proprietary advertising service, Google ads. In 2015 Google paid clicks aggregately rose 31% from the previous year. In 2011 insurance industry commanded over 24% of Google adwords. Other business segments included a diverse set of projects from both online and offline businesses.
When you Google for anything you scroll a number of search results produced by Google’s algorithm. Google algorithm bunch is the main factor for its lead in revenue market. The algorithm attempts to provide the most relevant results for your query and along with these results you may have a watch on suggested pages from advertisers.
To be the hotspot in google advertisement, advertisers have to go with outbid process in which they will have to outbid each other. Higher bid ranks top in the list while lower may not even be displayed. Advertisers pay Google each time a visitor’s click on an advertisement on its expected valuation. Google ads advertisement integration appears not only on all of the Google’s properties but also on incorporated non-Google website to display on their pages.
Acquisition and mergers
Google founders approached Yahoo twice in 1998 & 2002 to sell its search engine but got refusal for the proposals. As of December 2016, Alphabet acquired over 200 companies. Google itself was reorganised into a subsidiary of a larger holding company known as Alphabet Incorporation. In 2015 its most expensive purchase Motorola mobility was bought in 2012 for 12.5 billion dollars but it didn’t pay off well. However, its decision of acquiring YouTube for 1.65 billion dollars in 2006 has contributed 10% to all Google revenues. In Jan 2020 the market cap of Google aka Alphabet vaulted above a trillion-dollar mark for the first time.
Google spends 10% of its resources, manpower in moon shot projects (seeking opportunities where there is less possibility of success or which is nowhere in scope based on imagination and thoughts). As a result, it has engaged in too many businesses. This is why, it had to sell some of them. For instance, on 10 December, 2012, it sold Motorola Mobility to Flextronics for 75 million dollars. In the similar manner, Google sold off its satellite business Terra Bella in 2017. It has engaged in partnership with NASA, AOL, Sun Microsystems among others. The Company created a separate department for only seeking opportunities in such moon short projects.
Devouring the competition
Why Google for everything? Why not Yahoo!, Bing and other search engines? The answer to this question is the mission statement of a company. Yahoo search engine provides very complex interface but Google leads the race for providing user-friendly interface. The search engine went through many updates and is going to eradicate search engine optimisation abuse. It provides dynamic updating of results and make the entire system rapid and flexible search results stated to be personalized in 2005. Thus, these efforts are meant to lead in internet services.
•In a little over 60 second, Google sees
1) 2.4 million search inquiries
2) 600+ new users
3) More than 20.5 mn ad impressions
4) 1.15 mn Play store app download
•Google provides a vast advanced infrastructure and incentives to its employees for their work efficiency
•Apparently, approx. 2.5 mn people send their resumes to Google every year
•In sept, 1998 Google set up its first office in Susan wojcickils garage (current CEO of Youtube) and eventually moved to its current headquarters, Googleplex in mountain view, California.
•As per some reports, roughly around 20 to 30 % people working in Google are possessing no degree.
•As of 2016, Google had more than 70 offices in over 40 countries
Behind the J curve revenue of Google, it has various revenue boosting strategies. Google’s mission statement is to organise the world’s information and make it universally available and advantageous. Google provides developers and customers a platform which results in their profitability. It spends more than half on its core business – development and upgradation (for various Google Webs and apps), other 20% on seeking expansion in near future like new products related technologies etc and the rest is for moon shot projects.