Google’s licensing model
Google is actually two companies: Google search engine and business services company Google. The two parties jointly formed Google Media. Similarly, Google is also employed by two types of users: one is search users, and the other is business partners of all sizes seeking online visibility.
The two sides of Google cannot be separated like Oreo cookies; they are glued together by keywords. The keywords entered into the search engine are also used to determine the advertisements to be placed next to the user’s search results, because advertisers bid for the right to publish advertisements on these keywords. In Google’s expanded advertising network, the same ads are placed on thousands of partner websites. Even those websites that do not advertise but prominently appear on search results pages may be structured with content and HTML coding around the same keywords. As you can see, consumer experience (finding a destination) and business experience (finding a customer) are inextricably linked through shared keywords. But make no mistake: our corporate users do not have the same weight in the Google equation as consumer users. (Of course, most of us also use Google’s front-end as consumers.) Google’s first concern is the search experience, and the primary relationship is the relationship between Google and consumers. Without a satisfied searcher, there is no commercial value. Consumers may be free to focus on the search experience without realizing the commercial power of competition in the background. But business users who ignore consumers’ search priorities are asking for trouble. At the top of this chapter, I said that Google’s business model is profitable. But as I mentioned, even if you don’t make money, Google can make money. This is not a situation that Google likes, it tries to help you correct it, as I discussed in the second part. Google wants you to succeed.
This reciprocal relationship is integrated into Google’s advertising services in three ways:
_They are democratic. Anyone can participate, from an entrepreneur who owns a new website for the first time to a multi-billion dollar company. As in any great democracy, ingenuity, knowledge and perseverance can compete with the incumbent and the wealthy, and sometimes even defeat them.
_They are equal. Google’s success is good for you, and your success is good for Google. When you work effectively in Google’s advertising program, Google’s consumer users will also win. This kind of tripartite reciprocity is difficult to establish (or even difficult to measure) in traditional media advertising.
_They are very efficient. This is an understatement. Google’s innovative efforts in search advertising achieve the ideal match between advertisers and customers, depending on keywords. You only pay for fairly good matches that your potential customers recognize. Google’s AdSense program, participating sites share advertising revenue with Google, does not make participants pay a cent—this is efficiency. eBay is the most successful online company after the Internet bubble burst. It is built on the same three principles: democracy (anyone can participate), reciprocity (when participants succeed, eBay and its users will benefit) and efficiency (participation) Control costs and track returns). Over time, the advantages of the eBay system have been noticed by medium-sized physical stores, which now regard operating eBay stores as an important part of their business plan. Much larger companies often use eBay to process inventory. Whether you are selling computers or desk lamps in the attic, the playing field is fair and the economy is equally favorable. Google’s two prime-time revenue projects, AdWords and AdSense, both follow an adoption curve similar to eBay. Both of these projects were designed for the participation of the whole people, and were initially adopted by small companies-a single webmaster, an entrepreneur, and a product company. Both programs are now widely used by the largest publishers, manufacturers, and e-retailers on the Internet. Like eBay, both small and large participants enjoy the same benefits.