Google 2013 Annual Report Download - page 9

3GOOGLE INC.
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ITEM1.Business
 Google Now—WecontinuetoimproveGoogleNow,whichbringsusersinformationtheywant,whentheyneedit.In2013,
we added a number of new cards for car rentals, concert tickets, commute sharing, NCAA football and new reminders, as
well as improved public transit and updated TV cards, all appearing automatically throughout the day on any device at the
moment users need them.

Ads—WeintroducedEnhancedCampaignsinFebruary2013asanewwayforadvertiserstomoreeasilycreatecampaigns
that run across multiple devices in AdWords. In addition, we launched Estimated Total Conversions, which helps our
advertisersmeasurethefullinuenceoftheironlinecampaignsasusersmoveacrossmultiplescreens.
On January 29, 2014, we entered into an acquisition agreement with Lenovo to sell our Motorola Mobile segment. Google will retain
the vast majority of Motorola Mobile’s patent portfolio, which will be licensed back to Motorola Mobile for its continued operations.
Underthetermsoftheacquisitionagreement,LenovowillacquireMotorolaMobilefortotalconsiderationof(i)$660million
incash,subjecttoadjustmentsforworkingcapital,deferredrevenueandnetdebt,(ii)$750millioninLenovoordinaryshares,
based on the Lenovo share price at closing and (iii) a $1.5 billion interest free, three-year prepayable promissory note. We expect
the transaction to close in 2014.
Search
Google Search continues to evolve and improve as more information comes online, and as people increasingly look to their mobile
devices for answers throughout the day. While on the go, users can now ask questions of the Google Search app on Android and
iOSinnaturallanguageandgetanswers-“Where’smypackage?DoIneedajacketthisweekend?WhobuilttheEielTower?
What year was it constructed?”
To enable this, we’ve expanded and improved our Knowledge Graph, which allows users to search for things, people or places
that Google knows about, and built systems that recognize speech accurately and understand natural language. As described
above, we are also making Google Now more useful, adding more kinds of cards that help with everything from car rentals, to
concerttickets,tocommutesharing,toremindersuserscansetforaspecicplace-so,forexample,userscansay“Remindme
to pick up milk when I get to Shop Rite,” and they will get a reminder when they get to the store.
In addition, we are constantly improving and adding to our products and services, to provide users with more relevant results so
thatusersndwhattheyarelookingforfaster.WealsooerProductListingAds,whichincludericherproductinformation,such
as product image, price, and merchant information, without requiring additional keywords or ad text.
Advertising
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 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o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speci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.
As consumers increasingly live their lives across multiple screens, we introduced enhanced campaigns in AdWords to help advertisers
big and small create relevant campaigns across all devices more easily. All of the more than one million AdWords advertisers are
now using this new system, and the feedback we have gotten from marketers has been very positive.
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dierentscreensandformats.
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