Summary

SUMMARY

GOOGLE GETS A BUSINESS MODEL

* Brin and Page looked at GoTo.com and see the values of the pay-per-click model but they did not like GoTo.com’s search results were biased by the desire to make money from advertisers, and those who paid the most ranked the highest.

* Bill Gross had the idea of teaming up GoTo.com and Google but, Brin and Page decided to go alone.

* Google’s search results were unbiased by commercial consideration and they decided to place text-based ads on the right side of a page.

* Google decided to adopt the pay-per-click model.

* Brin and Page decided that in addition to the price an advertiser had to pay, ads should be ranked according to relevance and relevance should be measured by how frequently users clicked on ads.

* In mid-2000 – Google was dealing 18 million search queries a day and surpass one billion documents making it the largest search engine on the web.

* By late 2000 – they introduced AdWords.

* February 2002 – they introduced a new version of AdWords included the full set of pay-per-click advertising and sales started to accelerate.

* In 2003 – Google introduced AdSense that allowed third party publishers, large and small access Google’s massive network of advertisers on a self-service basis.

* With AdSense, Google splits revenues with the publishers

* In 2005 – Google’s revenue is close to $1 billion.

GOOGLE GROWS UP

* In mid 2001 – the company hired a new CEO to replace Larry Page with Eric Schmidt.

* Schmidt was brought to help manage the company’s growth with the explicit blessing of Brin and Page.

* When Schmidt was hired, Google had more than 200 employees and was handling 100 million searches a day.

* Schmidt, Brin and Page drove the development of a set of values and organization that would define the Google way of doing things

* VISION AND VALUES

* In mid-2001, Brin and Page gathered a core group of early employees and asked them to come up...