Engineer Entrepreneur ( Second Stage of Project)
THE COMPANY STRUCTURE
Identify the methods of advertising used by this company in order to get into the international market. Show examples (videos, banners, products, etc…)
Due to the several services that google have for web, mobile phones, specialized searches, communication ways and social networks, this company use each one for show advertisements inside of all web pages. This advertising can be in videos as YouTube, or medium or small squares, inside of web navigator, Chrome. Also, Google use advertising within applications of smartphone with operative system, Android. Google sells this big service for organizations and publicists for show adverts in any place.
Describe if these methods of advertising have been successful or not, Why?
Of course that yes, because each adverts have one link that redirect to another page according with the petition of google client. Further for each click that one user make to in this advertising, Google win money. For this reason one page web have several announces and some of them are very big for ensure that one user press over them and are of any type and all them, of Google.
ECONOMIC SITUATION OF GOOGLE
Google Inc is the company best positioned to benefit from the passage to the phones, most advertising and the use of portable devices, analysts said.
The company reported eighteenth consecutive quarter of revenue growth of 20 percent. The company, which should benefit the so-called "Internet of things" also said Thursday that its second-quarter revenue rose 22 percent to 15 thousand 960 million dollars, beating the average analyst estimate of 15 000 610 million dollars. The growth was driven by the core business of Internet search, YouTube and other customers, which combined to triple the traffic from mobile to businesses compared to the previous year, Jefferies analysts wrote in a note.
"Google is successfully transitioning their business from personal computers to cell, and is arguably in a more favorable on mobile phones than it did in the PC position, which should eventually be reflected in higher multiples" They Deutsche Bank analysts wrote in a note to clients.
The company, which get the most advertising revenue, owns Android, the most widely used software for cellular world, and YouTube, the service most popular video transmission. The budget for capital investment has exceeded Google 17 billion dollars in the last five years, and the company has used 13 billion dollars, according to analysts.
The company is also investing in new markets, with innovations such as access to high speed Internet and home automation or "internet of things".
Despite the increase in sales, earnings per share of $ 4.99 fell short compared to the forecast of $ 5,098.
The down 6 percent in the prices of advertising was less than 9 per cent in the first quarter. In the mobile advertising market, prices on smartphones were 57 percent lower than those of personal computers in the second quarter, according Covario, a service provider for advertisers to post their messages on search engines and other sites internet.
To search for new sources of revenue, Google introduced a service called strengthened ad campaigns urging advertisers to allocate more resources to wireless devices. The company has also pushed retailers to spend more on ads that show pictures and prices.
GOOGLE COMPETITION
Google is one of the most used Internet search engines, but with the development of social networks have emerged where competitors are increasingly powerful. And these threats come against a varied ranging from social networks (Facebook and Twitter) to commercial software companies (Apple and Microsoft) or vertical search engines (Amazon.com or eBay).
Facebook, with its 600 million users, could be a strong competitor in the mobile advertising-even in the field of search engines, following its alliance with Microsoft-, or dispute the supremacy as online video club, after his According to Time Warner. Google is powerful but not the company's worth on the market: Apple represents more than Google and Microsoft together; ie more than 300,000 million euros. And the throne of notoriety and brand recognition; that is, of the most admired companies in the world, continues since 2008 held by the iPhone maker.
But Google tries to counter this strong competition with continuous buying companies that allow succeed or simply fend off competitors. If you purchased a total of 48 companies in 2010, the last year the pace slowed and only bought 27, but including mobile division of Motorola (sold 12.500 million and competitor in terms of hardware Sony Ericson he was, LG and Samsung) and Admeld an online advertising company for which he paid $ 400 million.
Finally Google will have to centralize advertising on mobile devices like cell phones and tablets to be on par with new applications.
