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What makes Google so Good?

Article: http://www.businessweek.com/stories/2006-03-05/the-secret-to-googles-success

Ever since a young age I always knew what my favorite search engine was: Google. All of my family used it, and so did almost all of my friends. For the longest time I actually didn’t know other search engines existed except for Wikipedia because I needed to look up a lot of quick summaries/descriptions for things. However, even though I really did not have the faintest idea of what link analysis and ranking meant, it was clear that Google was probably the fastest and most relevant search engines out there. Still now, after learning about how search engines are created and are supposed to operate, I use Google as my primary search engine: half because I’ve grown used to it, but also half because it still is the quickest and most helpful search engine that is always improving. I have experimented with other search engines like Yahoo and MSN and through comparison have found that Google has never disappointed me in any type of search. Using the same search content, most of the good sites I would eventually use turned up through Google. The interesting thing is that most people think Google is so successful because of its brilliant technological advances for its web search engines. While that is true, the real aspect of Google that makes it stand out among its competitors is the success it has in bringing in Revenue.

In other words, AdWords is the thing that is making Google so good at generating Revenue through advertisements. This internally designed auction system seems similar to a lot of other previous designs but from what we know about it – because Google is still pretty closemouthed about its design- it is innovative and different from the usual auction design. It works so well because instead of just giving ad space to the buyer who would pay the most money per click, Google takes it one more step in that it gives this ad space to the buyer that would give Google the most money in total. They do this by not only seeing how much a buyer would pay per click, but also on how likely it is for a person to click on the advertisement. Through this ingenuity, Google takes in a commanding 30% more revenue than Yahoo does. Also, Google’s auction style is opposite of what most search engines might choose for their style. Whereas most would want to promote honesty in making telling the truth beneficial, Google has a second-price auction that “by understating the top price they’re willing to pay, advertisers could get a slightly lower position on the search page for a lot less money.”

In short, Google has all other search engines beat not only in its quality of searching, but also how well it uses its advertising space.

MITHui7

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