Beyond the Search Engine: The Case of Google

Abstract

Google has become the epitome of online search. The popularity and success of websites often depends on their page rank on Google, which shows the search giant’s influence and market power. The search engine evolved into an innovative money-spinning machine, which consistently outperforms its peers. In time, it also extended its activities beyond pure web search, disrupting industries as diverse as advertising, broadcast and cable TV, or mobile telephony—and the list goes on. However, these additional business segments were made possible through the stunning success of its advertising business model. Google’s online advertising business was initiated two years after the company’s incorporation in 1998, representing the cornerstone of its market success. Although the company brought further business model innovations to the market, the present section solely discusses its advertising business, as advertisements have been, up to now, the source of over 90 % of its total yearly revenues.