Summary
Google, Inc. is increasing investment in its advertising and search businesses, according to an announcement the newly-public firm made at its first analyst day. The company says its advertising products are most popular with mid-sized companies, and it wants to expand into both the large and small company markets.
Original source:
http://www.reuters.com/newsArticle.jhtml?type=internetNews&storyID=7586385
Details
- Web search leader Google Inc. is focusing investment on expanding advertising services and improving Internet search, the Web search leader said on Wednesday at its first analyst day as a public company.
- Google Chief Executive Eric Schmidt said Google's current advertising services are most popular with medium-sized companies and that it is working on products to serve the largest and smallest advertisers.
- Google's mid-market advertising business is highly automated and low cost.
- Very small advertisers are more likely to not have Web sites or be unfamiliar with Internet search advertising that drives virtually all of Google's revenue.
- The company recently increased the number of people devoted to direct sales and to helping large advertising customers track the performance of their Web search ad dollars.
- New Web search entrant Microsoft Corp. (MSFT.O: Quote, Profile, Research) has not said whether it will build its own Web search advertising services.
- It currently partners with Overture Services, Yahoo's Web search advertising provider.
- In all, Google said it would put about 70 percent of its investment toward its core Web search and advertising businesses.
- Schmidt said the business side of the company is run in a traditional way while the product development side is more creative.
- "We're in this to make money," said co-founder Larry Page, although he added that Google will not try to drive revenue with each of its products -- which range from local, news and image search to free online e-mail and photo management services.
- Google shares closed down 3.6 percent at $191.58 on the Nasdaq, ahead of IPO-related lock-ups expirations that are slated to expire on nearly 177 million shares early next week.
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