MGCR 331 Chapter Notes - Chapter 14: Search Engine Marketing, Adwords, Click Fraud

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Chapter 14 - google in three parts: search, online advertising, and beyond. Advertising drives google"s profits: has grown to earn more annual advertising dollars than any u. s. media company. 76% of the search advertising business + adsense network + doubleclick = the firm controls the majority of all online advertising dollars. Market capitalization: the value of a firm calculated by multiplying its share price by the number of shares --- > makes google the most valuable media company on the planet. Majority of revenue comes from advertising, but the firm is also now engaged in a wide-ranging multi-front war mobile, browsers, etc. Success of existing business = massive cash horde --- > fuels experimentation, innovation, tolerate failure, acquire aggressively, and patiently build new markets. Google uses pagerank to rank relevance of websites: google does not accept money for placement of links in search results, web pages that have more pages linking to them are ranked higher.

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