Google 2011 Annual Report Download - page 33

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On August 15, 2011, we entered into an Agreement and Plan of Merger (Merger Agreement) with Motorola, a
provider of innovative technologies, products and services that enable a range of mobile and wireline digital
communication, information and entertainment experiences, under which we will acquire Motorola for $40 per
share in cash, or a total of approximately $12.5 billion. The completion of this transaction is subject to customary
closing conditions, including the receipt of certain regulatory approvals.
Our business is primarily focused around the following key areas: search, advertising, operating systems and
platforms, and enterprise.
Search
We maintain a vast index of websites and other online content, and make it available through our search
engine to anyone with an internet connection. Our search technologies sort through an ever-growing amount of
information to deliver relevant and useful search results in response to user queries. We integrate innovative
features into our search service and offer specialized search services to help users tailor their search. In addition,
we are constantly improving and adding to our products and services, to provide users with more relevant results
so that users find what they are looking for faster.
In January 2012, we launched Search plus Your World. Now, when a user performs a signed-in search on
Google, the user’s results page may include Google+ content from people that the user is close to (or might be
interested in following). Relevant Google+ profiles and Google+ pages related to a specific topic or area of interest
may also appear on a user’s results page.
Advertising
Google Search. The goal of AdWords, our primary auction-based advertising program, is to deliver ads that
are so useful and relevant to search queries or web content that they are a form of information in their own right.
With AdWords, advertisers create simple text-based ads that then appear beside related search results or web
content on our websites and on thousands of partner websites in our Google Network, which is the network of third
parties that use our advertising programs to deliver relevant ads with their search results and content. 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 our websites and our Google Network Members’ websites as
specified by the advertiser.
Our AdSense program enables websites that are part of the Google Network to deliver ads from our AdWords
advertisers that are relevant to the search results or content on their websites. We share the majority of the
revenues generated from these ads with the Google Network Members that display the ads. The AdSense program
enables advertisers to extend the reach of their ad campaigns, improves our partners’ ability to generate revenue
from their content, and delivers relevant ads for their users.
Google Display. Display advertising comprises the videos, text, images, and other interactive ads that run
across the web on computers and mobile devices, including smart phones and handheld computers such as
netbooks and tablets. The Google Display Network provides advertisers services related to the delivery of display
advertising across publishers participating in our AdSense program, publishers participating in the DoubleClick Ad
Exchange, and Google-owned sites such as YouTube and Google Finance.
Through our DoubleClick advertising technology, we provide to publishers, agencies, and advertisers the ad
serving technology, which is the infrastructure that enables billions of ads to be served each day across the
web. Our DoubleClick Ad Exchange creates a real-time auction marketplace for the trading of display ad space. We
aim to simplify display advertising so it is easier for advertisers and publishers to manage campaigns across
different formats, on different websites, and for different devices.
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