Google 2007 Annual Report Download - page 52

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Please find page 52 of the 2007 Google annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

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Overview
Google is a global technology leader focused on improving the ways people connect with information. Our
innovations in web search and advertising have made our web site a top internet destination and our brand one of the
most recognized in the world. Our mission is to organize the world’s information and make it universally accessible and
useful. We serve three primary constituencies:
•Users. We provide users with products and services that enable people to more quickly and easily find, create and
organize information that is useful to them.
•Advertisers. We provide advertisers with several ways to deliver relevant targeted advertising including:
•Google AdWords, an auction-based advertising program that enables advertisers to deliver relevant ads
targeted to search results or web content on our web site and our Google Network members’ web sites.
•Google Audio Ads, an automated online media platform that schedules and places advertising into radio
programs.
•Google Print Ads, a web-based marketplace for placing ads in print media.
•Google TV Ads, an automated online media platform that schedules and places advertising into TV
programs.
•Google Video Ads, user-initiated click-to-play video ads that run on our web sites and the web sites of our
Google Network members.
These advertising programs provide advertisers with a cost-effective way to deliver ads to customers across Google
sites and through the Google Network, which is the network of online and offline third parties that use our advertising
programs to deliver relevant ads with the search results and content they provide.
•Google Network Members and Other Content Providers. We provide the online and offline members of our Google
Network with our Google AdSense programs. These include programs through which we distribute our
advertisers’ AdWords ads for display on the web sites of our Google Network members as well as programs to
deliver audio ads on radio broadcasts, print ads for display in newspapers and magazines and ads on television.
We share most of the fees these ads generate with our Google Network members, thereby creating an important
revenue stream for them. In addition, we have entered into arrangements with certain other content providers
under which we distribute or license their video and other content, and we may display ads next to or as part of
this content on the pages of our web sites and our Google Network members’ web sites. We share most of the
fees these ads generate with these content providers and our Google Network members, thereby creating an
important revenue stream for these partners.
How We Generate Revenue
Advertising revenues made up 99% of our revenues in 2005, 2006 and 2007. We derive the balance of our revenues
from the license of our web search technology, the license of our search solutions to enterprises and the sale and license of
other products and services.
Google AdWords is our automated online program that enables advertisers to place targeted text-based and display
ads on our web sites and the web sites of our Google Network members. Most of our AdWords customers pay us on a
cost-per-click basis, which means that an advertiser pays us only when a user clicks on one of its ads. We also offer
AdWords on a cost-per-impression basis that enables advertisers to pay us based on the number of times their ads appear
on Google Network members’ sites specified by the advertiser. For advertisers using our AdWords cost-per-click pricing,
we recognize as revenue the fees charged advertisers each time a user clicks on one of the ads that appears next to the
search results on our web sites or next to the search results or content on Google Network members’ sites. For advertisers
using our AdWords cost-per-impression pricing, we recognize as revenue the fees charged advertisers each time their ads
are displayed on the Google Network members’ sites. Our AdWords agreements are generally terminable at any time by
our advertisers.
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