By: Sam Poggi

1999 Google Inc.39 employees

Mostly engineersMoney was running out, and Google needed a

business model that would begin to bring in money

Google in 1999 cont…Could have made a deal with DoubleClick

An ad network that specialized in graphical banners

Turned down the opportunity because it went against the ideals of page and BrinThe ads had no relevance to anything

The New ApproachThey would sell only text adds to sponsors who

targeted particular key wordsEx. “Ford cars”

An ad for Ford Motor Company would appear above the results

They were sold on a cost per-thousand model (CPM)

Advertisers paid by the number of impressions Google delivered

Ultimately if this philosophy did not work, Google would make the deal with Double Click

Nasdaq Market Crash.com crash

DoubleClick’s stock went from $150 to $15When the market crashed, Google looked to

GoTo.com for their business modelAllowed Advertisers to buy text ads online with

a credit cardGoogle separated the search results from the

ad results

October 2000AdWords

“Have a credit card and 5 minutes? Get your ad on Google today.”

Still maintained a CPM approachAdvertisers paid by the impression, not by the

clickBecame a big hit

Dealing with GrowthIn August 1999 , Google had 3 million search

queries a dayBy mid 2000, the search queries increased to

18 million per dayThe Index surpassed 1 billion documents

Making Google the largest search engine on the web

The Deal with YahooGoogle replaced Inktomi as Yahoo’s core

search serviceThe deal validated Google’s technology, and

brought more people to the siteYahoo bought a $10 million dollar equity

stake in Google

Late 2000Adwords debutsGoogle was having 60 million search queries

per dayGoogle had yet to spend any money on

marketing

Advertising and MarketingEveryone else in the search business was

advertisingGoogle began to look for a way to advertise,

but ultimately found noneGoogle then scratched the plan to market and

decided to use PR as a tool for getting people to read and talk about Google

Google’s ExpansionGoogle went from a few employees to forty in

its first year, then to 150 by 2000Google had a very strict hiring process, often

times they would debate for hours about a particular candidate

Google wanted to avoid the hiring spiral

Eric SchmidtCEO of Google since 2001Went to BerkleySince he took over the company has never

had a down quarter

Growing too much?By July 2001 Google had over 200 employees

and were hiring five more per weekThe hiring spiral became a real threat

“Don’t be evil”This was put in the corner of every blackboard

to remind people to have good business ethics

2001: The Year Google Got BigHandling more than 100 million searches per dayAcquired DejaNews

A public messaging system with nearly 500 million posts on a wide variety of subjects

Much faster than just using the web crawlerGoogle then went on to buy Blogger, Picasa, and

KeyholeThese launched Google print

Google Images ballooned to 250 million imagesOverall, Google had over 3 billion total

documents

2001, Cont.Serving search queries in 40 different

languagesEntry into the mobile phone market

Partnerships with Cingular, AT&T, and Handspring

Brin and Page ultimately regained control of the company, and made all ideas go through them

2001: Cont.AdWords was growing rapidly

$85 million in revenueOverture had $288 million in revenue, and

Google took note of their pay-per click methodIn Overture’s model, advertisers could buy the

top linkGoogle made a model where they ranked the

ads based off their popularity and cost per clickThis was called AdRank

AdSenseAdSense allowed third party-publishers to

access Google’s network of Advertisers and sign up for AdSense

Google would then scan the site and place relevant ads on the site similar to the way Google does for itself

By 2005 it was 15% of Google’s overall revenues