Google 2009 Annual Report Download - page 31

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Please find page 31 of the 2009 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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The AdWords auction system also incorporates the AdWords Discounter, which automatically lowers the
amount advertisers actually pay to the minimum needed to maintain their ad position. Consider a situation where
there are three advertisers—Pat, Betty and Joe—each bidding on the same keyword for ads that will be displayed
on Google.com. These advertisers have ads with equal click-through rates and bid $1.00 per click, $0.60 per click
and $0.50 per click, respectively. With our AdWords discounter, Pat would occupy the first ad position and pay only
$0.61 per click, Betty would occupy the second ad position and pay only $0.51 per click, and Joe would occupy the
third ad position and pay only $0.01 per click. The AdWords discounter saves money for advertisers by minimizing
the price they pay per click, while relieving them of the need to constantly monitor and adjust their cost-per-click.
Advertisers can also experience greater discounts through the application of our smart pricing technology, which
can reduce the price of clicks for ads served across the Google Network based on the expected value of the click to
the advertiser.
AdSense Contextual Advertising Technology. Our AdSense technology employs techniques that consider
factors such as keyword analysis, word frequency and the overall link structure of the web to analyze the content
of individual web pages and to match ads to them almost instantaneously. With this ad targeting technology, we
can automatically serve contextually relevant ads. To do this, Google Network members embed a small amount of
custom HTML code on web pages that generates a request to Google’s AdSense service whenever a user views
the web page. Upon receiving a request, our software examines the content of web pages and performs a
matching process that identifies advertisements that we believe are relevant to the content of the specific web
page. The relevant ads are then returned to the web pages in response to the request. We employ similar
techniques for matching advertisements to other forms of textual content, such as email messages and Google
Groups postings. For example, our technology can serve ads offering tickets to fans of a specific sports team on a
news story about that team.
Our display advertising programs provide advertisers and publishers services related to the delivery of
branded display advertising. The key elements of our display advertising technology include:
DoubleClick Advertiser Platform. The DoubleClick Advertiser Platform provides tools for media planning,
buying, selling, ad delivery, measurement, and optimization. The key technologies included in this platform are:
•Google Ad Planner and MediaVisor. This research and media planning tool allows agencies and
advertisers to identify the web sites their target customers are likely to visit. MediaVisor improves media
buying by replacing formerly manual tasks in the media buying process.
•DART for Advertisers. DART for advertisers is an ad management and serving solution that can manage,
traffic, serve and report on an advertiser’s online campaign.
•DoubleClick Rich Media and Video. This tool covers the process of creating, managing and reporting on
rich media and video advertising.
DoubleClick Publisher Platform. The DoubleClick Publisher Platform provides tools that address key
challenges throughout the publisher ad sales cycle and helps maximize the value of publisher content. The key
technologies included in this platform are:
•The DART Ad Serving Platform. DART for Publishers is our hosted ad serving platform and DART
Enterprise is our licensed software solution. Both provide tools to manage digital ad sales operations for
publishers.
•DART Sales Manager. This proposal and finance management tool is designed for companies using the
DART platform.
•DART Adapt for Publishers. This tool is DoubleClick’s solution designed to increase campaign
performance by managing publisher inventory.
•DoubleClick Ad Exchange. The DoubleClick Ad Exchange connects advertisers, agencies, and networks
with online publishers to improve yield for sellers and campaign performance and return on investment
for buyers.
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