Google Case Study

Google

1. What is targeted advertising?

Targeted advertising is a type of advertising whereby advertisements are placed so as to reach consumers based on various traits such as demographics, psychographics, behavioral variables (such as product purchase history), and firmographics ... or other second-order activities which serve as a proxy for these traits

How is it revolutionizing the advertising industry?

It is a way to finally target potential customers directly rather than advertising broadly which only reached a few customers. With this new advertising technique Google has been able to develop a Targeted Text Ad approach. With this ad approach Google has been able to eliminate the waste of mass advertising because these ads are seen by potential customers only, who are searching for information regarding that particular topic.

How is this affecting newspapers and TV?

Targeting specific demographics through the use of TV and newspapers can be a challenge. Television advertising may help in some regard, but results can vary since the type of customer you market toward may not be tuned in when your commercial runs. Unless you advertise in a trade publication, newspaper advertisements can also make it difficult to target a specific type of customer. Because of this it makes more sense to choose a platform, like the internet, that has a better opportunity at reaching your intended target.

Is targeted advertising desirable for all firms?

Targeted advertising is not desirable for all firms. If the firm is local then television advertisements that run during a local news hour may be better suited for your firm. Running advertisements in a local newspaper may also increase your business' exposure with local costumers.

2. What are the various directions for innovation to take?

There are many directions that Google can take when it comes to technology. One of the most important sources of new innovation is new technology. A few innovations may include phone service, a smart watch or smart TV. Innovation is essential to sustaining a competitive advantage. A mature firm without innovation is doomed to decline so it would be in the best interest of an established firm in a stagnant industry to pursue innovation. Although actively pursuing innovation can be difficult and uncertain, with the right team, the firm will get a payoff from their efforts.

3. Would you describe Google as a happy ship?

Google most definitely would be considered as a happy ship. A happy ship seems to be the most efficient and innovative because it keeps the employees engaged. Engaged employees equals better business results because having a healthy and happy staff leads to less absences and more productive workers.

4. Do you think Google’s drive for great growth faces serious obstacles? If so, how might it overcome them?

No, although Google’s growth rate has dropped it is still relatively impressive compared to peers its size. Companies of a certain size inevitably mature. One obstacle that Google faces is keeping top talent. Google's business, to stay truly cutting edge, needs the best engineers to keep flying through