A Walk Through the Google Search Factory
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) and Cnet
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV