IT For Managers

Term Paper
FINANCE
Guide: Ms. Teena Bagga
Submitted By:
Madhur Arora C-36
Bhanu Chopra C-53
TABLE OF CONTENTS
Certifcate.. (3)
Abtract... (!)
"#$%&'(C$"&#..
(5)
)itory o* +oo,-e . (5)
+oo,-e. Buine Mode- ..
......................................... (6)
)o/ +oo,-e Ma0e %e1enue2 $he Bi, 3uetion.
(4)
A %e1o-utionary Buine Mode-: 5e it i.
(6)
&b7ecti1e o* the tudy ...........................
(89)
Methodo-o,y (ed .
(89)
Ana-yi : 'icuion
(89)
Conc-uion ....
(83)
%;<%;#C;S .
(8!)
CERTIFICATE
&n the bai o* dec-aration ubmitted by Madhur Arora and Bhanu Chopra =
tudent o* Amity Buine Schoo- = " hereby certi*y that the term paper
tit-ed >+oo,-e Ad: )o/ +oo,-e +enerate %e1enue ? /hich i ubmitted to
'epartment o* Mater o* Buine Adminitration= ABS = Amity (ni1erity
(ttar @radeh= #oida= in partia- *u-f--ment o* the reAuirement *or the a/ard
o* the de,ree in MBA = i an ori,ina- contribution /ith eBitin, 0no/-ed,e
and *aith*u- record o* /or0 carried out by them under my ,uidance and
uper1iion.
$o the bet o* my 0no/-ed,e thi /or0 ha not been ubmitted in part or *u--
*or any 'e,ree or 'ip-oma to thi (ni1erity or e-e/here.
@-ace: #oida
'ate
Ms. Teena Bagga
(Aitant @ro*eor)
"n*ormation
$echno-o,y
(A.B.S)
Amity (ni1erity (ttar @radeh= #oida
+oo,-e Ad: )o/ +oo,-e +enerate
%e1enue
Madhur Arora
Ami! Business S"hoo#
Bhanu Chopra
Ami! Business S"hoo#
$. A%sra"

+oo,-e AdCord i +oo,-eD main ad1ertiin, product and main ource o*
re1enue. +oo,-eD tota- ad1ertiin, re1enue /ere(S'E!F.5 bi--ion in
F98F. AdCord oGer pay-per-c-ic0= that i= cot-per-c-ic0 (C@C) ad1ertiin,=
cot-per-thouand-impreion or cot-per-mi--e (C@M) ad1ertiin,= and ite-
tar,eted ad1ertiin, *or teBt= banner= and rich-media ad. $he AdCord
pro,ram inc-ude -oca-= nationa-= and internationa- ditribution. +oo,-eD teBt
ad1ertiement are hort= conitin, o* one head-ine o* F5 character and
t/o additiona- teBt -ine o* 35 character each. "ma,e ad can be one o*
e1era- diGerent "nteracti1e Ad1ertiin, Bureau ("AB) tandard iHe.
Sa-e and upport *or +oo,-eD AdCord di1iion in the (nited State i
baed in Mountain Iie/= Ca-i*ornia= /ith ma7or econdary oJce in Ann
Arbor= Michi,an= the companyD econd -ar,et oJce i -ocated in #e/ 5or0.
$he third--ar,et (S *aci-ity i in Mountain Iie/=
Ca-i*ornia= headAuarter. ;n,ineerin, *or +oo,-e AdCord i baed in
Mountain Iie/= Ca-i*ornia.
&e! 'ords: Goog#e( Ads( Re)enue( Ad)erisemens( Business
Sraeg!
*. Inrodu"ion
Goog#e Ad'ords ha e1o-1ed into +oo,-eD main ad1ertiin, product and
main ource o* re1enue. +oo,-eD tota- ad1ertiin, re1enue /ere (S'E!F.5
bi--ion in F98F.

AdCord oGer pay-per-c-ic0= that i= cot-per-c-ic0 (C@C)
ad1ertiin,= cot-per-thouand-impreion or cot-per-mi--e (C@M)
ad1ertiin,= and ite-tar,eted ad1ertiin, *or teBt= banner= and rich-media
ad. $he AdCord pro,ram inc-ude -oca-= nationa-= and internationa-
ditribution. +oo,-eD teBt ad1ertiement are hort= conitin, o* one
head-ine o* F5 character and t/o additiona- teBt -ine o* 35 character
each. "ma,e ad can be one o* e1era- diGerent "nteracti1e Ad1ertiin,
Bureau ("AB) tandard iHe.
Sa-e and upport *or +oo,-eD AdCord di1iion in the (nited State i
baed in Mountain Iie/= Ca-i*ornia= /ith ma7or econdary oJce in Ann
Arbor.
+. ,isor! o- Goog#e
+oo,-e= the -eadin, earch en,ine /or-d/ide= /a *ounded in 8664 by
Stan*ord (ni1erity ,raduate tudent Karry @a,e and Ser,ei Brin.
Chi-e at Stan*ord in 8666= @a,e and Brin be,an de1e-opin, a earch en,ine
they e1entua--y entit-ed Bac0%ub. $hi earch en,ine /a dei,ned to -oo0
at the connectin, -in0 bet/een /eb pa,e in order to determine a iteD
authority. "n 8664= @a,e and Brin et up their frt data center in @a,eD
dorm.
+oo,-e= "nc. /a etab-ihed on September L= 8664 in a *riendD ,ara,e in
Men-o @ar0= Ca-i*ornia. @a,e and Brin hired their frt emp-oyee= Crai,
Si-1ertein= /ho /a -ater to become +oo,-eD 'irector o* $echno-o,y.
+oo,-e achie1ed praie and pub-icity a ne/ pread rapid-y throu,h on-ine
and oMine media a /e-- a their receipt o* numerou a/ard and
recommendation. $heir audience continued to ,ro/ a-on, /ith their
reputation *or eGecti1ene= re-e1ance= peed and re-iabi-ity.
"n F999= +oo,-e rep-aced 5ahooD o/n interna- earch en,ine a the pro1ider
o* upp-ementary earch reu-t on 5ahoo. #o/= /ith more than 59N hare
o* the tota- earch mar0et= +oo,-e pro1ide earch reu-t *or numerou
earch en,ine on the /eb.
.. Goog#e/s Business Mode#
+oo,-e i amon, the -eadin, $echno-o,y companie in the Cor-d. +oo,-e i
mot popu-ar *or it Search en,ine= /hich he-p "nternet uer ,et ue*u-
reu-t in repone to their Auerie. +oo,-e maintain 1at indeB o*
/ebite and he-p uer earch diGerent type o* content uch a $eBt=
"ma,e= Audio= Iideo= B-o,= #e/= and Map throu,h it product. +mai- i
another 1ery popu-ar product o* +oo,-e= *or *ree emai- er1ice to the
uer. +oo,-e pro1ide ocia- net/or0in, er1ice to it uer throu,h it
+oo,-eO product.
$he main product i it hu,e poo- o* uer and eBteni1e data about ho/
they beha1e on-ine. $hi data i ued to match companie /ith potentia-
cutomer= er1in, up ad that uer are more -i0e-y to /ant to c-ic0.
+oo,-e pro1ide it er1ice to the "nternet uer *or *ree. +oo,-e ma0e
the re1enue *rom Ad1ertier /ho are intereted in reachin, out to the
on-ine uer. +oo,-e he-p them create teBt-baed Ad throu,h +oo,-e
Ad/ord P a e-*-er1e auction-baed ad1ertiin, pro,ram. $hee ad
appear neBt to the earch reu-t. Mot ad1ertier pay +oo,-e on a Cot
per C-ic0 (C@C) bai= /hich mean ad1ertier pay /hen uer c-ic0 their
Ad. +oo,-e he-p ad1ertier eBtend their Ad campai,n to the +oo,-e
#et/or0 member. /ebite throu,h it Adene pro,ram. +oo,-e #et/or0
member ,et a hare o* Ad re1enue in return. +oo,-e pro1ide 'ip-ay
Ad1ertiin, er1ice throu,h 'oub-eC-ic0 ad1ertiin, techno-o,y. 'ip-ay
ad1ertiin, comprie o* 1ideo= teBt= ima,e= and other interacti1e ad.
'ip-ay ad appear on 5outube= +oo,-e <inance= and +oo,-e #et/or0
member /ebite.
+oo,-e ha de1e-oped Android P an open ource mobi-e o*t/are p-at*orm P
that can be ued by handet manu*acturer to inta-- on their de1ice and
by de1e-oper to create app-ication *or mobi-e de1ice. +oo,-e pro1ide
Chrome bro/er *or /eb bro/in,. +oo,-e i /or0in, /ith e1era- &;M
(&ri,ina- ;Auipment Manu*acturer) to brin, computer runnin, Chrome
&S. +oo,-e er1e the ;nterprie mar0et throu,h hoted /eb-baed
app-ication ca--ed +oo,-e App. +oo,-e App inc-ude +mai-= +oo,-e 'oc=
+oo,-e Ca-endar= and +oo,-e Site. @eop-e need a bro/er and an "nternet
connection to ue the +oo,-e App.
+oo,-e ha de1e-oped a +-oba- Sa-e and Support in*ratructure /ith
pecia-iHed team acro diGerent indutrie. +oo,-e mu-ti-product a-e
*orce e-- campai,n that inc-ude Search= 'ip-ay= and Mobi-e ad1ertiin,.
+oo,-e he-p mot o* it cutomer /ith a e-*-er1e approach and trie to
brin, automation /here poib-e. +oo,-e ha bui-t a ,-oba- upport team to
he-p ad1ertier and +oo,-e #et/or0 member to ,et the maBimum 1a-ue
out o* it oGerin,. +oo,-e a-e team *ocu on bui-din, re-ationhip /ith
-ar,et ad1ertier and -eadin, "nternet companie.
+oo,-e buine ha ! 0ey cot e-ement: %:'= 'ata center operation=
$raJc AcAuiition= and Sa-e : Mar0etin,. +oo,-e in1et hea1i-y into %:'
to create ne/ product and impro1e eBitin, product. +oo,-e i etimated
to ha1e o1er 8 mi--ion er1er in data center around the /or-d that proce
near-y 8 bi--ion earch reAuet e1ery day.
+oo,-e ha in1eted hea1i-y in thee data centre and mana,in, their
operation continue to be a 0ey cot e-ement. $raJc acAuiition cot
comprie o* money paid to the +oo,-e #et/or0 /ebite under the
AdSene pro,ram and to the ditribution partner /ho ditribute +oo,-e
$oo-bar and other product or dri1e traJc to the +oo,-e /ebite. +oo,-e
Sa-e : Mar0etin, cot inc-ude the cot o* mana,in, ,-oba- a-e and
upport team a /e-- a ad1ertiin, and promotiona- eBpenditure.
+oo,-e ,enerate o1er 66N o* it re1enue *rom ad1ertiin, and thi ha
remained true *or -at e1era- year. $hou,h +oo,-e ha e1o-1ed it Search
oGerin,= ,ot into Mobi-e pace= tryin, to ,et into &peratin, ytem= and
ha bui-d oGerin, *or the ;nterprie= any o* them ha not yet reu-ted into
ma7or re1enue tream. App-e= on the other hand= earned L9N o* the
re1enue *rom product (i@hone and i@ad) that didn.t eBited 5 year a,o.
Can +oo,-e do that2 Can +oo,-e inno1ate it Buine Mode- o that 59N o*
re1enue in F98L /i-- not come *rom ad1ertiin,= but *rom +oo,-e ne/ 1a-ue
propoition in neBt 5 year2 "n your opinion= /hat can be the ne/ re1enue
tream *or +oo,-e2
0. ,o1 Goog#e Ma2es Re)enue3 The Big 4uesion
"n a /ord= AdCord. "n ome repect +oo,-e i eentia--y the /or-dD
-ar,et bu he-ter= deri1in, 66N o* it re1enue *rom ad. $hatD /hat
eparated a nacent ear-y-F999 +oo,-e= 0no/n primari-y a a earch
en,ine= *rom it competitor. +oo,-eD *ounder rea-iHed that i* peop-e /ere
,oin, to 1iit the ite and enter a term in the earch boB= they /ou-dnDt be
-andin, on the ubeAuent pa,e by accident. $hu theyDd be moti1ated to
buy a product *rom any ad1ertier harp enou,h to p-ace an ad there.
Let us understand how we help Google make profts:
Say you run a ma-- company - a ba0ery -ocated in South ;Btenion @art 8=
Qandy.= *or intance. "tD a*e to ay that peop-e /ho /ou-d +oo,-e the
/ord RSouth ;BR O Rba0eryR /ou-d -i0e-y patroniHe your buine. Buy an
ad on a pa,e thatDd be 1iited on-y by peop-e /ho are -oo0in, *or a $ope0a
ba0ery= and youDre tar,etin, about a accurate-y a itD poib-e to tar,et a
potentia- c-iente-e.
<rom a +oo,-e cutomerD perpecti1e (defnin, a cutomer in the
traditiona- ene= a omeone /ho ,i1e the company money in eBchan,e
*or it er1ice)= thi i a propoition /ith -itt-e ri0. AdCord typica--y
operate on a cot per c-ic0 bai= meanin, that an ad1ertier can p-ace an
ad /ith Hero ob-i,ation. "* no one c-ic0 on the ad= the cutomer doenDt pay
a dime.
5. A Re)o#uionar! Business Mode#: 6es i is
$he traditiona- ad1ertiin, media - radio= te-e1iion= ne/paper et a-. -
/ere and are incapab-e o* dra/in, a ditinction bet/een patron -oo0in, to
,enerate traJc= and thoe -oo0in, to ma0e the pub-ic a/are o* their brand.
A tatic ,enera--purpoe ad canDt te-- /hoD acti1e-y in the mar0et *or
/hate1er product itD e--in,= and /hoD 7ut pai1e-y ittin, there. $o
accommodate the -atter - peop-e /ho arenDt ready to buy= but /ho mi,ht
other/ie 0eep your competitor top-o*-mind - +oo,-e -et you pay per
impreion. $hat mean that the moment a +oo,-e uer accee a pa,e on
/hich an ad appear= +oo,-e char,e the company that p-aced the ad.
Chich a-o -itera--y doenDt cot a dime= but thatD a *unction o* the ma--
amount in1o-1ed. A typica- uch a,reement a--o/ e1era- 1ie/ o* your
ad *or -e than a penny.
AdCord i on-y one pron, o* +oo,-eD dua- re1enue trate,y. A re-ated and
imi-ar-y named but diGerent er1ice i AdSene.
%ather than ha1in, ad appear on earch pa,e acceed upon 1iitin,
+oo,-e.com= AdSene a--o/ o/ner o* other /ebite to 7oin +oo,-eD
net/or0 and run +oo,-e-branded ad. +oo,-eD a-,orithm do a-- the /or0=
too. Si,n up *or the net/or0 and your /ebite de1oted to Bi0ram yo,a
mi,ht end up runnin, ad *or mat= prop= etc. Companie that pay +oo,-e
to run thoe ad indirect-y beneft ite o/ner /ho ue AdSene.
Accordin, to +oo,-eD income tatement= about L9N o* it ad1ertiin,
re1enue come *rom AdCord= the ret *rom AdSene.
+oo,-e. re1enue i baed on ad1ertiin,= o it need more and more p-ace
to ho/ it ad to increae it re1enue. So= eBpandin, it reach throu,h it
AdSene conteBtua- ad net/or0 ma0e ene. So doe it acAuiition o*
'oub-eC-ic0. Both o* thee mo1e a--o/ +oo,-e to p-ace ad on Ceb
propertie it doe not o/n.
Simi-ar-y= +oo,-e ha been conitent-y acAuirin, propertie that er1e a
1enue *or it ad= uch a B-o,,er and 5ou$ube. +oo,-e ha a-o pioneered
ne/ oGerin, that attract audience *or it ad= uch a +mai-.
So /hat doe it mean2
$hi mean 6L-66 N o* re1enue i ,enerated throu,h ad1ertiement.
7. O%8e"i)es o- he sud!
8. $o tudy the re1enue ,eneration proce o* +oo,-e *rom
Ad1ertiement.
F. $o tudy and undertand the +oo,-e mode- o* buine and trate,y.
9. Mehodo#og! :sed: Se"ondar! ;aa
Baic tudy o* pat data *rom re-iab-e ource o* internet.
@at fnancia- data o* +oo,-e.
+oo,-e. ba-ance heet *or pat 3 year.
$heir buine mode-.
$heir re1enue ,eneration mode-.
Ana-yHin, the ro-e o* ad1ertiement in +oo,-e. buine and
re1enue.
<. Ana#!sis = ;is"ussion
'ata /a ana-yHed and dicued.
Ce ana-yHed the a1ai-ab-e data *rom fnance point o* 1ie/.
The analysis done by us consists of these points:-
+oo,-e i /or-d L3
rd
company in term o* re1enue at (.S 59E (Bi--ion)
/hich i remar0ab-e *or a /eb baed company /hich tarted
operation in year 8664.
+oo,-e. annua- proft i (.S 89.L! E(Bi--ion).
+oo,-e. top re1enue ,eneration i *rom ad1ertiement /hich conit
o* AdCord : AdSene.
About 66-6L N o* re1enue i ,enerated throu,h ad1ertiement.
"* /e remo1e ad1ertiement *rom +oo,-e. buine mode- then
+oo,-e /on.t e1en ma0e to top 89Q companie in the /or-d in term
o* re1enue.
+oo,-e Search i 7ut a product *or +oo,-e /hich he-p +oo,-e to
imp-ement other product and mar0etin, trate,y /hich ,enerate
proft in rea-.
'urin, our reearch /e *ound the top 89 indutrie /hich contribute
to +oo,-e. re1enue *rom ad1ertiement. $he *o--o/in, i the -it o*
indutrie and their pendin,:-
"ndutry Ad Spendin,
+oo,-e. F98F ad1ertiin, re1enue E!F.5 Bi--ion
Brea0do/n By "ndutry
<inance : "nurance E! bi--ion
%etai-er : +enera- Merchandie EF.4 bi--ion
$ra1e- : $ourim EF.! bi--ion
Sob : ;ducation EF.F bi--ion
)ome : +arden EF.8 bi--ion
Computer : Conumer ;-ectronic EF bi--ion
Iehic-e EF bi--ion
"nternet : $e-ecom E8.L bi--ion
Buine : "ndutria- E8.6 bi--ion
&ccaion : +i*t E8.F bi--ion
$he bi,,et contributor to the +oo,-e earnin, are the fnance and
inurance indutrie. $hey eem to ha1e it the /ort= payin, a much
a E!3 per c-ic0 *or indutry 0ey/ord.
+oo,-eD re1enue ource a-o inc-ude: Kar,er +mai- tora,e
ubcription= enterprie -e1e- +oo,-eD /eb ana-ytic= +oo,-e
<iber= +oo,-eD Motoro-a unit= +oo,-e +-a= +oo,-e @-ay (pre1iou-y
0no/n a the Android Mar0etp-ace)= and many other mice--aneou
ource. )o/e1er= the -ar,et re1enue ,enerator *or +oo,-e i ti--
ad1ertiin, /hich run on top o* their earch en,ine and er1ice.
$>. Con"#usion:
Baed on +oo,-eD re1enue ource= +oo,-e i main-y in the on-ine
ad1ertiin, pace buine -i0e 5ahooT but /ith the acAuiition o* Motoro-a=
+oo,-e i a-o in the mobi-e phone buine. $here ha been a -ot o*
pecu-ation on /hether +oo,-e i tranitionin, *rom o*t/are to hard/are in
the ame manner App-e ha.
;1ery other er1ice +oo,-e oGer - *rom Map to ;arth to +mai- to 'oc to
'ri1e - eBit to *urther the primary buine. $hoe er1ice /ere
eBpeni1e to create and reAuire ,reat reource to maintain= but *or the
reu-t - ha1in, uer pend more time on +oo,-e and thu perpetuate
readin, and c-ic0in, on +oo,-e ad - it money /e-- pent.
$he mot -i0e-y prob-em +oo,-e /i-- ha1e to *ace do/n i a bac0-ah baed
on pri1acy concern. +oo,-e i /e-- a/are o* thi dan,er= o it remain to be
een i* they can e1ade it.
"n the end= +oo,-e ha a -on, /ay to ,o. $he -ead +oo,-e ha in the
buine i ome/hat impoib-e *or any other /eb baed company to e1en
thin0 o* it.
+oo,-e doe not ha1e threat o* ur1i1a- or a threat o* competition but it ha
a competition to ite-* and to the ima,e it ha et.
+oo,-e need to be conitent and a-o ,ro/ in the manner it ha been
doin, o *ar.
"t hou-d eBpand and achie1e it ,oa- o* bein, a ynonym *or "nternet
$$. REFERENCES
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