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Technology: Innovations Of Google Essay

1913 words - 8 pages

Innovations of Google
Today Google is one of the most well-known companies in the world but like most internet startups it has humble beginnings. Google originally began as a research project by two Stanford university Ph.D. students. Larry Page and Sergey Brin began the project for the Stanford Digital Library Project in 1996 to develop an integrated online library of information. (Hamen 7) Early search engines were difficult to use because they only listed results based on the number of times the search term appeared on the web site. Page and Brin wanted to create a search engine that though more like a human. So in 1996 the pair left Stanford and started Google Inc. out of a garage in Menlo Park, California. (Gilbert 14) In 2001 Google received a patent for PageRank. PageRank was a computer program that ordered each search result based on the number of times it was linked to by other relevant web sites. This method more closely resembled a person’s subjective idea of importance and therefore returned better search results. (Levy, Big thinker) With the help of PageRank Google’s search engine worked more intuitively than others on the market. PC magazine reported that Google “has an uncanny knack for returning extremely relevant results” and recognized them as the search engine of choice in the Top 100 Web Sites for 1998. Today Google’s search engine is used for 70 percent of the web searchers in the world. (Sutherland 4) Google is pushing technology forward by innovating in many different sectors of business and technology, such as advertising, mobile phone development, providing internet and television service, and also making advancements in automotive technology.
After creating a better way to search the web, Google needed a way to make money off of their creation. Refusing to charge the users of the service, Google decided to use ads to bring in revenue. Google also wanted to make these ads useful and welcome, not just annoying virtual billboards for displaying something you don’t want. On Google’s web site all the ads were shown as plain blocks of text relevant to the search. The real innovation is in how Google sells these ads. Unlike most conventional businesses at the time Google did not use a sells team to sell ads space. Google created their own system called AdWords. AdWords is a huge marketplace of virtual auctions, in which predetermined bids are submitted in advance and winners are determined using a mathematical equation in fractions of a second. (Levy, Googlenomics 113) For every search a user makes an ad auction takes place. Advertisers bid on search terms, but instead of paying every time the ad shows up advertisers pay only when their ad is clicked on. To prevent companies from low balling bids Google decided the winner of an action would only pay the price of the bid below theirs plus $0.01. “If Joe bids $10, Alice bids $9, and Sue bids $6, Joe gets the top slot and pays $9.01. Alice gets the next slot for $6.01.”(113)...

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