First annual Google programming contest

Jim Whitehead ejw@cse.ucsc.edu
Thu, 14 Feb 2002 13:44:49 -0800


> I've never read such a thing in media coverage of Google. Do
> you have a reference?

No, this is hearsay.

According to the Google site:

http://www.google.com/corporate/today.html
Google is a business, and a profitable one. The revenue the company
generates is derived from offering its search technology to companies like
Yahoo! and the WashingtonPost.com and from advertising sales based on
keyword targeting. However, you may have never seen an ad on Google. That's
because Google does not allow run-of-site ads that appear indiscriminately
on every page of our results. Every ad shown must be relevant to the results
page on which it is displayed, so only certain searches produce sponsored
links above or to the right of the results. Google firmly believes that ads
can provide useful information if, and only if, they are relevant to what
you wish to find.


This other article states:
http://www.businessweek.com/bwdaily/dnflash/dec2000/nf2000127_947.htm

So, where's the business model? To this end, Google has started to diversify
its revenue stream. It boasts 100 co-brand partners, such as The Washington
Post and Netscape, that have selected Google as an embedded Internet search
engine on their site. Most of these co-brand partners pay the company from
$8 to $10 per thousand queries and from $600 to $2,000 per month in
licensing fees. Google also has a program offering free search capabilities
to smaller Web sites, with the caveat that it might begin inserting
advertisements on search-query pages at a future date -- but no banner ads.

The company has also instituted a pay-for-play scheme called Adwords that
allows an advertiser to purchase a word and place a small text ad on the
page whenever that word is mentioned in a query. But Google is making the
most money from customized intrasite search functions, built for a dozen
select clients, such as router giant Cisco Systems and Linux provider Red
Hat.


I'll freely admit this casts doubt on my claim. I may have mis-heard the
co-branding arrangement.

- Jim