Saturday, September 20, 2008

Google's Core Business

Google's core business can be summarized in three words: advertising, search, technology.

Advertising provides 99% of Google's revenues. The AdWords program, which provides the bulk of Google's advertising revenues, lets advertisers pay Google to display their ads on Google's search results pages. The (considerably smaller) AdSense program enables Google to display these same ads on third party websites, sharing the advertising revenue with the third-party website owners.

Search is the key service that Google provides to its users. Search delivers the "eyeballs" that view the advertising. Google's brand and its user relationships are built around this service.

Technology is Google's core competency. Google's technology includes the people who work for Google, the software they develop, the hardware infrastructure they operate, and the data they index.

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