This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

A Walk Through the Google Search Factory

Google (GOOG - Get Report) held what it called a "factory tour" Thursday to walk journalists and industry analysts through its search and advertising businesses and to sketch broadly where the company is taking dozens of initiatives.

Rather than using the day as a launching pad for new projects or developments, Google paraded out a number of product managers who explained how the company's search technology and advertising programs work.

CEO Eric Schmidt also offered up the usual chestnuts of how Google has 294 years to go in achieving its 300-year goals (a time frame that should inspire some interesting valuation models among financial analysts) and how heavily the company relies on its homegrown 70-20-10 formula.

Schmidt said Google focuses 70% on its core search and advertising business, 20% on tangential technologies such as Google News and Google Maps, and the rest on whatever strikes an employee as worth pursuing. The unstructured 10% of company resources "produces some inspiring insights," he said.

Marissa Mayer, director of consumer Web products at Google, addressed the frequently voiced complaint that products such as Google News are in perpetual beta, with no apparent effort to turn them into revenue streams. Mayer reassured the crowd that it will begin to change. "We're getting closer to seeing a few things get out of beta, and you'll see some of them come out over the coming months," she said.

Others outlined in relatively deeper detail how Google has leveraged its superior search algorithms in ways that are beginning to transform how advertisers connect with customers on the Internet.

Susan Wojcicki, a product manager for AdSense, said Google's algorithms search Web pages for content to match phrases on it to terms that advertisers have paid for.

As a result, in the same way that Google's sponsored ads appear next to search results, they appear on millions of Web pages -- from large sites such as America Online (TWX - Get Report) and Cnet (CNET - Get Report) to the smallest blog -- whether readers find them through search engines or not. The publisher of the page gets a cut of the ad revenue generated by the Google links.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CNET $0.67 0.00%
GOOG $693.01 0.00%
TWX $75.14 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs