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Dr. Michael D. Featherstone
Introduction to e-CommerceGoogle/
SearchEngineMarketing
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Two ways to Navigate
What are they?
Direct Navigation (enter url in address bar)
Search Engine
Advantages? Disadvantages?
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“Google's technology has emerged from a series of continuous improvements or what Japanese management consultants call Kaizen.” (The Google Story, David Vise, 2005)
Google must be pretty important if we’re going to devote time in class to study it… IT IS.
Since going Public in 2004, In the past five years Google’s revenues have grown by 50%. It is in the 100th percentile market capitalization and the 97th in EPS.
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“As the heavyweight of online search, Google is one of the worlds most ubiquitous brands and an indispensable tool for anyone navigating cyberspace.” (Gary Hamel, ‘The Future of Management’, 2007)
As [Cloud Computing] spreads, it promises to expand Google's footprint in industry far beyond search, media, and advertising, leading the giant into scientific research and perhaps into new businesses. In the process Google could become, in a sense, the world's primary computer.(Business Week, Dec 13, 2007 “Google and the Wisdom of Clouds”)
2010 Google Yahoo! Bing Ask Total
2010 02 71.35% 14.60% 9.56% 2.55% 98.06%
2010 01 71.61% 14.76% 9.13% 2.66% 98.16%
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HOW GOOGLE CHANGED SEARCH
Early search engines competed primarily on the quantity of returns
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HOW GOOGLE CHANGED SEARCH
Yahoo (1994; reborn 2002):
Before Google, before AltaVista, there was Yahoo. Despite all the changes in the search space over the years, Yahoo has remained one of the most popular search destinations on the web. Yahoo stood out from its early competitors by using humans to catalog the web, a directory system.
Crawler-based results from its partners only kicked in if there were no human-powered matches. That actually made Yahoo more relevant than competitors for many years, until the Google-era ushered in crawler-based results that were both comprehensive and highly relevant.
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HOW GOOGLE CHANGED SEARCH
Google based its search on a new search algorithm
• This resulted in highly relevant search results
• Grew primarily by word of mouth
• Started as a research project by Stanford PhD candidates Sergey Brin and Larry Page “The Anatomy of a Large-Scale Hypertextual Web Search Engine” 1997
• Incorporated “Page Rank” (a neat little play on words)
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About Page Rank
Why is understanding a bit about how page rank works important, from an e-Commerce perspective?
From “The Anatomy of a Large Scale Hypertextual Web Search Engine” by Sergey Brin and Lawrence Page
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About Page Rank
PageRank relies on the uniquely democratic nature of the web by using its vast link structure as an indicator of an individual page's value.
In essence, Google interprets a link from page A to page B as a vote, by page A, for page B. But, Google looks at more than the sheer volume of votes, or links a page receives; it also analyzes the page that casts the vote. Votes cast by pages that are themselves "important" weigh more heavily and help to make other pages "important.“
Important, high-quality sites receive a higher PageRank, which Google remembers each time it conducts a search. Of course, important pages mean nothing to you if they don't match your query. So, Google combines PageRank with sophisticated text-matching techniques to find pages that are both important and relevant to your search. Google goes far beyond the number of times a term appears on a page and examines all aspects of the page's content (and the content of the pages linking to it) to determine if it's a good match for your query.
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About Page Rank
Pages that have many links from many other pages are worth looking at.
Pages with links from an influential site, like Yahoo are worth looking at.
Pages with links from other influential sites like universities are worth looking at.
Improving a sites ‘page rank’ in Google (or any search engine) has become a huge Web ‘cottage industry’
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But something beside page rank has to going on to make Google the powerhouse it has become…Arguably, the most important technology company in the USA (or the world for that matter).
• How could Google turn this great search engine into a revenue producing process?
•How could they monetize Search?
•What would be their business model?
Google rejected both Paid Inclusion and Pay for Placement search monetization models
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Google searches display two types of results:
• Organic Results – The ‘normal’ search results
• Sponsored Links – Results which advertisers have paid for
THE BASICS
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Google searches display two types of results:
• ORGANIC RESULTS – The ‘normal’ search results
• SPONSORED LINKS – Results for which advertisers have paid
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Google searches display two types of results:
• ORGANIC RESULTS – The ‘normal’ search results
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Google searches display two types of results:
•SPONSORED LINKS – Results for which advertisers have paid
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Google AdWords
•Advertise to people searching on Google and Google’sadvertising network•Reach people actively looking for information about your products and services online.•Easily control costs - pay only when
people click on your ad
Sponsored Links Bow Ties - Free Shipping.100% Silk - Self & Pre-Tied.Buy 3 get 1 Free. Only $14.95 each.www.buyyourties.com
Paul Fredrick Men's TiesDiverse collection of print & wovenluxury Italian silk neckwear.www.paulfredrick.com
Mens Bow TiesBrooks Brothers™ - Official Site.Shop Classic, Quality Fashions.www.BrooksBrothers.com
Boys Bow TiesThe clothes you love from J.Crew,now available for kids ages 2-10.www.JCrew.com
Bow Ties in Silk & CottonSelf-tie, pre-tied and clip-on.Over 200 patterns. Different sizes.www.kottydesign.com
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Google AdWords
Google AdWords are driven by key word auctions. For example, I am willing to bid up to $0.07 for the key words ‘bow ties’, ‘ties’, ‘bowties’, and ‘mens bow ties’… at least until my daily advertising budget of $1.00 has been reached.
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Google AdWords
Google AdWords are a (in my view THE) key element in the resurgence of e-Commerce and the ‘new dot-com’ era.
This advertising process has had a huge impact on not just Google, but also Microsoft and Yahoo!
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Thank you for your attention
This Concludes Today’s Presentation
