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Problems And Challenges Google Face Marketing Essay

Paper Type: Free Essay Subject: Marketing
Wordcount: 3502 words Published: 1st Jan 2015

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Refer from the case, it appears that Google are very alert of the challenges and problems that they will be facing. Competition seems to be the major challenger to Google. Google Search became the most popular web search since the company founded in 1998. They turn the traditional search technology into serious moneymaker. Because of this, many more competitors enter into the search engine market and vie to share this moneymaker opportunity. Yahoo was the second popular ways for people to find web pages of interest. According to Search Engine Market Share report in December 2009 (Netmarketshare, 2010), Yahoo is the 2nd largest search engine on the web by query volume, at 6.29% (Google at 85.35%). Somehow the statistical show Yahoo had no significant threat to Google but never underestimate the competitor. On July 29, 2009, Yahoo and Microsoft announced a partnership in which Bing web search (formerly known as Live Search, Windows Live Search, and MSN Search) would power by Yahoo Search. (Microsoft Inc, 2009)

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A large portion of Google’s revenue comes from online advertising. Google introduce AdSense in 2003, an advertising serving application to publishes advertisements on the web. Google AdSense is consider the market leader of electronic marketing by earned US$2.04 billion revenue of the first quarter of 2010 through AdSense(Google Inc, 2010). However online adverting business is extremely easy to duplicate by others competitor. There are many competitor provided online advertisement on the web as well. Some people cannot use AdSense advertise on their sites. They are either denied from joining the Google AdSense program, or not wish to do business with Google. A number of people are also finding their Adsense accounts are being ban for reasons that are completely beyond their control. Thus those people would likely to seek for other alternatives to Google AdSense such as AdBrite, Bidvertiser, Chitika and more.

Google is diverts their core business to software development company and they must be concerned with legitimate offensives from its rivals. On July 7, 2009, Google Chrome OS (Open source operating system) is announced to compete with Microsoft Windows OS and Apple Mac OS (TAIPEI, 2010). One major competitor is Microsoft, which has a history of diminishing its competitors by exploiting the fact that its Microsoft Windows operating system can be found on 95 percent of the world’s personal computers(Katherine Noyes, 2010). Subsequently, Google purchased Android Inc. in 2005 and present a free mobile operation system called Android (Ben Elgin, 2005). Google now are come after the larger smartphone manufacturer such as Nokia and Apple iPhone. As result, the unit sales for Android OS smartphones ranked first in the U.S. market in the second and third quarters of 2010 (Lance Whitney, 2010), with a market share of 43.6% (Troy Wolverton, 2010). Even Google gained huge success on their Andriod OS, but they still need to compete with heavy consumer demand for Apple’s new iPhone 4.

Click Fraud is another difficulty to Google. Click fraud is an illegal practice that inhabitants use to increase their own personal ads revenues and also by companies who use click fraud as a way to diminish a competitor’s advertising funds. The illegal clicks could be performed by manually click the ads and also using automated software that are programmed to click these banner ads and pay per click text ad links. According to Google Adwords Blog, claimed the invalid clicks rate is roughly 10% (2007) since they launched AdWords in 2002 (Larry Dignan, 2007). And those 10% is equivalent to $100 million a year in potential revenue foregone to the company.

Copyright Infringement is a new concern when Google move into media and digital content. The succeeded of Google Library has threaten the authors, publishers, photographers and illustrators, whose copyrighted work it gives out for free to online audiences. In 2008, several authors, publishers and professional organizations filed a $125 million, class-action lawsuit against Google Books (Stephanie Condon, 2008). The lawsuit is getting forceful when Google acquired YouTube in 2008 (Michael Arrington, 2008). YouTube featuring many video clips from popular television shows, movie and music video that has not licensed. In 2007, Viacom filed a lawsuit against Google for more than $1 billion in damages, claiming that nearly 160000 unauthorized clips appear on YouTube site (Anne Broache and Greg Sandoval , 2007) .

Even Google gain huge successes in the marketplace, but not all Google products and services have been successful. Typically included the Google print, radio and television advertising have not much impact in the market. Google print ad business, an effort which allowed advertisers to buy ads across hundreds of U.S. newspapers. Meanwhile Google launched Radio Ads back in 2006 in an attempt to create a new revenue stream for broadcast radio (Google Inc, 2006). But with the low the initiative was not as successful as the company had hoped (Brian Womack, 2009). With the fail of Google print and radio advertising projects makes people wonder if Google’s television venture will fall apart in future as well.



Click fraud



Unsuccessful venture



AdSense – Click fraud

System breakdown

Yes, Google business strategy is effectively address the challenger that they faced. Google’s mission is “to organize the world’s information….and make it universally accessible and useful” (Google Inc, 2010). Google is one of the American fast growing companies (Jonathan Rivers, 2010). They are constantly looking for new ways to grow and have added tons of new products. Google has launched a number of products and these products are not simply enhancements to their popular search engine. For example, they have produced a personalized search tool that takes into account a user’s previous searches when returning results. The cumulative effect is more relevant results to be generate. That’s the reason why Google web search still the most popular these days.

Google’s commitment to innovation is indicated by these more recent additions to their services which show that their ambitions extend far beyond search and information management through developing operating systems and hardware across multiple platforms to compete with others competitor (Dave Chaffey, 2010). Recently Google had added few products and services. Google TV essentially integrates applications and the internet directly into your television (Cyril Washbrook, 2010). The Google TV search bar brings together all the information, programs, internet, and media surrounding whatever you search for. Nexus One Phone using the Google Android mobile operating system launched in January 2010 (Clint Boulton, 2009). Google Mobile advertising provides ads on the mobile phone devices (Marguerite Reardon , 2006). Google Chrome operating system to target Netbook and Chrome browser introduced in 2009 (Martin, 2009).

In response to the click fraud, Google has good solutions in place to monitor and prevent it. Google had established a Click Quality team to investigate all the invalid clicks issue (Google Inc, 2007). Google also developed a three-stage system to discover invalid clicks, which included real-time filters, offline analysis, and reactive investigations(Google Inc, 2007).. Besides that, Google providing advertisers more tools to monitor click fraud. In 2006, Google announced a new AdWords feature allowing advertisers monitor their invalid click activity in their account (Google Inc, 2006). The metrics of “invalid clicks” and “invalid clicks rate” will

Google always have expert when dealing with lawsuit matters. Previously various groups had filed a class action lawsuit against Google Library. But now Google have settled majority lawsuit and will be working closely with these industry partners to bring even more of the world’s books online (Google Inc, 2009). Acocrding to NEW YORK, NY (October 28, 2008), Google announced a revolutionary settlement agreement with authors and publishers worldwide that would expand online access to millions of in-copyright books and other written materials (Stephen, 2008). The agreement acknowledges the rights and interests of copyright owners, provides an efficient for them to control how their intellectual property is accessed online and enables them to receive compensation for online access to their works.

How might a business owner benefit from the services offered by Google? Which Google services and products would be attractive to you if you owned a business? Why would you choose to use these particular products or services?

Google has grown rapidly in recent years into a company that now offers a variety of tools and services, many of which are aimed directly at business owners. Part of Google most useful services is free, making them even more attractive to small business owners on a limited budget. There are many benefit of using the products and services provide by Google.

Effective for online marketing activities.

Low cost

Fast, realiable

So if I were a business owner, I will definitely utilize Google products and services into my business. Here are several search and business related Google products that most of the business owner should consider using. The first services I will acquire to my business are the well-known Google Accessible Search. Accessible Search is a search engine and it allows my company website and other related information with the priorities of usable and accessible web sites in the search results. The benefit of using this service is to let the potential customer to obtain more accurate information about my company with minimal distractions when browsing.

Google AdWords would be the primary online advertising tool for my business. AdWords is the text-based advertising. By utilize Google AdWords will definitely benefits to promote my business effectively. The most important feature of AdWords is the geotargeting, it allows advertisers to select specific cities or regions. Once selected, the ads will only appear to Internet users who are located in the chosen geographical areas. It helps to narrow down the areas to advertise that will bring customers who are interested to my business precisely. Another benefit of using AdWords is low-cost. Google AdWords is available daily budgets starting at as low as one cent per day, most of the low budget business can affordable and it make a large amount of highly targeted traffic to my business.

Google Places also would be the product to consider into my business. Google Places is a product that produces search results for local businesses. This application was designed to helps people to find what people are looking for. By using Google Places, my business is putting on the map, literally. The advantages of Google Places is a site that provides maps, driving directions and contact information for local businesses as people search for them. In addition to being added to the map, I can post photos, videos, website, and other information that can help to draw customers to my business.

Next product is Google Alert, an e-mail notification service, which sends alerts based on chosen search terms, whenever there are new results. With Google Alerts, I can monitor the Web, news, blogs, groups easily. The most important is to monitor references to any of my competitors. The advantages this product is enormous. Particularly with the growth of social networking websites, I might discover new opportunities and received comment of my company, product or service that I might want to counter with alternate opinions.

What are the pros and cons of a company like Google extending its reach into new industries? How Google’s growths affect consumers? How does it impact the business world?



•Using YouTube to reach the media is cheap and easy.

• wide variety of videos, infomercials, how to videos and much more

•Unlimited creativity

•require no of equipment, computer, video equipment, microphone and editing software

•Saves money on marketing


•Limited privacy, so anyone can see the videos you post

•There is violence on some of the videos on the site

•There could be copyright infringement issues


The Google growth has a great impact on consumers. First of all, Google is affecting consumer shopping habits or changing the way consumers shop and buy goods and services. For some consumers, shopping and buying online have become part of their daily lives. Most of the people will research a product and brand online before making a purchase decision. Typical included where consumers use to obtain more information about the product and services that interested over the internet. Furthermore they will likely to see a review on the YouTube or shop online.

Google growths also made people live easier. For example, Google Maps Navigation, an Internet-connected GPS navigation system is useful when a person wants to go somewhere and it is a tool that helps makes life simpler.

Google change the ways of communication. With the “Voice over Internet Protocol” or internet-phone is providing free and low-cost communication between user.

Online TV plays a significant role in future. There are already many commercial channels shifting their attention from TV to YouTube or other sites like Hulu. Further, Google have seen the opportunity and already announced its paid content over YouTube and the new video advertising technology.


The existence of Google had change the business world.

Google change on Traditional Marketing Media. At the present, no matter how small a business cannot ignore the necessity of having a website. Marketing budgets are changing from traditional routes to focus on Internet searches and Google ads. Many businesses find what they need via Google. A website gives businesses the chance to target potential customers with a countless of information and possibilities such as directions and maps, tempting special offers and mailing lists, as well as bookmarking and sharing options. One major and significant benefit of investing in online advertising over traditional methods such as television, newspapers, magazines and radio is the ability to track results.


How successful do you think Google will be in the future?


Anne Broache and Greg Sandoval (2007) “Viacom sues Google over YouTube clips” [Online] Available from http://news.cnet.com/Viacom-sues-Google-over-YouTube-clips/2100-1030_3-6166668.html [Accessed: 7 November 2010]


Ben Elgin (2005) “Google Buys Android for Its Mobile Arsenal” [Online] Available from http://www.businessweek.com/technology/content/aug2005/tc20050817_0949_tc024.htm [Accessed: 29 October 2010]

Brian Womack (2009) “Google to Shut Down Radio Business, Cut up to 40 Jobs” [Online] Available from http://www.bloomberg.com/apps/news?pid=newsarchive&sid=an_av5h6Kkmo [Accessed; 7 November 2010]


Cyril Washbrook (2010) “Google TV throws down the gauntlet” [Online] Available from http://www.mediaspy.org/report/2010/05/21/google-tv-throws-down-the-gauntlet/ [Accessed: 2 November 2010]

Clint Boulton (2009) “Google Phone Nexus One Coming in January 2010” [online] Available from http://www.eweek.com/c/a/Mobile-and-Wireless/Google-Phone-Nexus-One-Coming-in-January-2010-694582/ [Accessed:1 November 2010]


Dave Chaffey (2010) “Google case study – covering Google business strategy and technology case study” [Online] Available from Google case study – covering Google business strategy and technology case study [Accessed: 2 November 2010]


Google Inc (2010) “Google Announces First Quarter 2010Financial Result” [online] Available from http://investor.google.com/earnings/2010/Q1_google_earnings.html [Accessed: 28 October 2010]

Google Inc (2006) “Google to Acquire dMarc Broadcasting” [Online] available from http://www.google.com/press/pressrel/dmarc.html [Accessed: 1 November 2010]

Google Inc (2010) “Google Company Overview” [Online] Available from http://www.google.com/corporate/ [Accesed; 22 october 2010]

Google Inc (2007) “Meet the Click Quality team” [Online] Available from http://adwords.blogspot.com/2007/02/meet-click-quality-team.html [Accessed: 1 November 2010]

Google Inc (2006) “Estimating invalid clicks” [Online] Available from http://adwords.blogspot.com/2006/07/estimating-invalid-clicks.html [Accessed: 2 November 2010]

Google Inc (2009) “The Future of Google Books” [Online] available from http://books.google.com/googlebooks/agreement/ [Accessed: November 2010]



Lance Whitney (2010) “Android hits top spot in U.S. smartphone market” [Online] Avalible from http://news.cnet.com/8301-1035_3-20012627-94.html [Accessed: 1 November 2010]

Larry Dignan (2007) “Google: Click fraud costs us $1 billion a year” [Online] Avalible from http://www.zdnet.com/blog/btl/google-click-fraud-costs-us-1-billion-a-year/4577 [Accessed: 1 November 2010]


Jonathan Rivers (2010) “Fortune’s Top 100 Fastest Growing American Companies” [Online] available from http://www.billshrink.com/blog/7172/fortunes-top-100-fastest-growing-american-companies/ [Accessed: 5 November 2010]


Katherine Noyes (2010) “Why Windows Is Bad for Business” [Online] Available from http://www.pcworld.com/businesscenter/article/207196/why_windows_is_bad_for_business.html {Accessed: 29 October 2010}


Microsoft Inc (2009) “Microsoft, Yahoo! Change Search Landscape” [Online] Available from http://www.microsoft.com/presspass/press/2009/jul09/07-29release.mspx [Accessed: 28 october 2010]

Michael Arrington (2008) “Google Acquires Omnisio To Spice Up YouTube” [Online] Available from http://techcrunch.com/2008/07/30/google-acquires-omnisio-to-spice-up-youtube/ [Accessed: 5 November 2010]

Marguerite Reardon (2006) “Google’s ambitions going mobile” [Online] Available from http://news.cnet.com/Googles-ambitions-going-mobile/2008-1039_3-6138755.html [Accessed: 6 November 2010]

Martin (2009) “Google Browser – New Google Chrome Portable Browser” [Online] Available from http://www.ghacks.net/2009/05/24/portable-google-browser-google-chrome/ [Accessed: 26 October 2010]


Netmarketshare (2010) “Search Engine Market Share as reported by Compete, comScore, Hitwise, Net applications, Nielsen Online & StatCounter” [Online] Available from http://marketshare.hitslink.com/search-engine-market-share.aspx?qprid=4 [Accessed: 28 October 2010]



Stephanie Condon (2008) “Google reaches $125 million settlement with authors” [Online] Available from http://news.cnet.com/8301-13578_3-10076948-38.html [Accessed: 4 November 2010]

Stephen (2008) “Major Google Books Agreement with AAP” [Online] Available from http://stephenslighthouse.com/2008/10/28/major-google-books-agreement-with-aap/ [Accessed: 8 November 2010]


TAIPEI (2010) “Google sets “late fall” release for Chrome” [Online] Available from http://www.reuters.com/article/idUSTRE65112220100602 [Accessed : 28 october 2010]

Troy Wolverton (2010) “Google’s Android software dominates U.S. smartphone market” [Online] Available from http://www.mercurynews.com/top-stories/ci_16493024?nclick_check=1 [Accessed: 1 November 2010]


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