Standvik Steel

In: Business and Management

Submitted By jerryhardy
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Setting the Internet Revenue Contribution at Sandvik

DEVRY UNIVERSITY – ONLINE SBE 430 September 17, 2012

Case Study 5.2 Standvik Steel

Google.com makes most of its money from paid advertising. When you do a search on Google.com, you will often see listings at the very top and on the right side. Google.com charges money for those listings. Every time someone clicks on those links, the company that is listed gets charged. The amount varies depending on the competition for that particular key phrase that was searched. Key phrases can be as low as five cents per click, whereas others can be ten dollars or more per click.

Google also runs these ads on websites that participate in Google's AdSense program. The advertisers pay Google for each click, Google keeps some of the money, and passes the rest of the money to the websites that ran the ads. Google also places ads on other sites that they run, like YouTube and Gmail.

About 85% of Google’s net revenue comes from ads running on Google sites. About 10% comes from ads running on other sites. In addition, about 5% comes from “other,” which includes Google Apps subscriptions, search appliance sales, etc. Google noted today on its earnings call that its ITA Software acquisition, which powers airfare search, helped contribute to a bump in “other” revenue this past quarter.

http://www.splatf.com/2011/10/google-revenue/

Google faces many risk factors that could affect its ability to grow and increase revenue and market share. Some of the risk factors include new technologies, litigation and confidence loss through click fraud and index spammers that could harm the integrity of Google’s web search results. (Chaffey 2009)

REFERENCES

Chaffey, D, (2009) E-Business and E-Commerce Management (4th Ed.) Prentice Hall Harlow, England, pg.…...

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