Google uses the advertising business model for their website. They are very successful with it too. When you go to their search engine, they feature several websites on the page or if you use any of their pages their is advertising. Their is advertising on all of their pages that they feature. It is a brilliant idea because some people aren't even aware that when they click on links they are bringing Google revenue. This model is very effective for Google because what Google features. They have a search engine, email, a social media website, blogger and so on. What is spectacular about it all is that it is all linked. They own the Android store, which is connected to your phone, unless you have Apple. This requires you to have a google account to set it up. The calendar that is featured on the phone is linked to your email. It is so brilliantly designed that the advertising tactics work well with it. Linking everything together ensures that someone will click on the ad that is viewed a significant amount of times.
Elements of their advertising business model are that it doesn't cost the consumer any money, it has a huge market segment and it creates ongoing value for consumers. Their websites (or products) are such a wide range that it can appeal to anyone. The average cell phone user knows no age. My grandma has a cell phone and is familiar with it and my younger brother has one. This huge age range signifies their knowledge with the internet and Android market. Almost every generation is familiar with Google and how to use it effectively as a search engine and email. It is free, which makes it of even greater value to the consumer.
What if Google were to pursue an ecommerce style business model? They could use the subscription or affiliate model, which requires the user to pay. But, they would not have the consumers that they have today. By consumers, I mean the people that have Google accounts. They would be charging to utilize their services and it would not appeal to many people. I know I wouldn't pay for email when there are other free options. If they required users to pay for their sites, it would not be a very beneficial business model. I feel as thought out of all the business models, Google did pick the best one. Advertising allows the consumer to freely use their sites and content. Google does so well with their business model and are continuing to grow and thrive because of it.
No comments:
Post a Comment