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4 GOOGLE INC. | Form10-K
PART I
ITEM1.Business
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 off er 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 specifi ed 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.
To make mobile ad buying seamless and accessible for more than a million AdWords advertisers, we integrated our AdMob
technology directly into our AdWords system in June2012. This enables advertisers to run eff ective campaigns across the more
than 300,000 mobile applications running ads by AdMob – all from within the AdWords interface. AdWords advertisers can now
manage, measure and adjust search, display and video ads, reaching people on more than 2million websites and hundreds of
thousands of apps, across all screens.
Google Display
Displayadvertising 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 ofdisplayad space. We aim to simplify display advertising so it is easier
for advertisers and publishers to manage campaigns across diff erent formats, on diff erent websites, and for diff erent devices.
In addition, YouTube provides a range of video, interactive, and other ad formats for advertisers to reach their intended audience.
YouTube’s video advertising solutions give advertisers a way to promote their content to the YouTube community, as well as to
associate with content being watched by their target audience. YouTube also off ers analytic tools to help advertisers understand
their audience and derive general business intelligence. In the past year, YouTube has experienced strong growth in mobile
viewers and has established key partnerships with content companies to help monetize mobile video.
Google Mobile
Mobile advertising is still in early innings, though the mobile device is quickly becoming the world’s newest gateway to information.
Google is focused on developing easy-to-use ad products to help advertisers extend their reach, help create revenue opportunities
for our publisher partners, and deliver relevant and useful ads to users on the go.
Google Mobile extends our products and services by providing mobile-specifi c features to mobile device users. Our mobile-specifi c
search technologies include search by voice, search by sight, and search by location. Google Mobile also optimizes a large number
of Google’s applications for mobile devices in both browser and downloadable form. In addition, we off er advertisers the ability to
run search ad campaigns on mobile devices with popular mobile-specifi c ad formats, such as click-to-call ads in which advertisers
can include a phone number within ad text. AdMob also off ers eff ective ad units and solutions for application developers and
advertisers. We continue to invest in improving users’ access to Google services through their mobile devices.
Google Local
Google is committed to providing users with relevant local information. We’ve organized information around more than 80million
places globally from various sources across the web. Users can fi nd addresses, phone numbers, hours of operation, directions
and more for millions of local queries like shops, restaurants, parks and landmarks right on Google.com, on Google Maps and on
Google Maps for mobile. They can also discover more places that are right for them by rating the places they’ve been, and getting
customized recommendations based on their tastes and those of their friends directly within Google Maps. Our products and
services also help local business owners manage their online presence and connect with potential customers. Millions of business
owners have verifi ed their free business listings via Google Places to ensure that users have up-to-date information about their
establishments, and to contribute additional details such as photos and products/services off ered. Google Off ers brings people
daily deals from local and national businesses, redeemable for discounted goods or services. From restaurants to spa treatments
to outdoor adventures, Google has deals from the best businesses a city has to off er as well as popular national brands.
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