Nowadays the internet search has successfully attracted thousands of people. Many companies develop their businesses in this area experimenting with new models of operations day by day. One of the most popular companies regarding internet search is Google. It is one of the most successful internet engines.
The situation in this market is much tense because the companies which operate here are in strong competition with each other. The main key to competition is advertising. In these conditions, the companies have to experiment continuously with new ways to keep the businesses profitable.
Google is facing an important issue: began experimenting with new formats of advertising or not? This is an important decision for the company and it has to decide what to do. It has to analyze carefully its background to identify its successes and its failures. This makes it possible to define the potentials and the type of activities or operations where the company is more successful.
Google transformed itself from a search engine to an advertising one.
In such a market condition where other companies generate profits by advertising, is difficult not to do the same. Google was obligated to begin online advertising because it could not continue operating without revenues. Advertisements were seen as the only possibility to generate money. The company succeeded in its new attempt generating considerable revenues. It developed its advertising model making it easier for the advertisers and attractive for the users. A new format is a new commitment and challenge for Google. Is the company able to succeed in this new commitment too?
In my opinion, the company has to experiment with this new root. It has done good work till today not only with the search part but also with the advertisements trying at the same time to preserve its image and not bothering much with advertisements. The program of advertising that Google has used till today is appropriate and has demonstrated to be successful. Ads have been the money source for Google, so the most meaningful thing to do is to continue performing in this area. Every company should invest further in its most profitable area.
Arguments for my statement
Taking present this background we can find bad results like its new product portfolio.
Trying to change its profile, the company changed its product portfolio. It began introducing new products but none of them were leaders in their respective categories. This wasn’t a successful attempt but despite that fact, Google continued experimenting with new roots.
In my opinion, this is only one side. I would like to give a look to the other side considering these facts as common occurrences in such cases. I want to underline the good aspects of the Google experiments in new advertising formats. The company managed to turn itself into an advertising engine successfully generating 99% of its revenues from the advertisements. It has also maintained successfully its business sensibility. Advertising has not turned Google into a strictly capitalist company like its competitors. The company managed to preserve successfully its social tendencies and its homepage. Its simplicity makes Google different from its competitors. In my opinion, a company that manages to generate revenues and at the same time benefit its users deserves to be called a successful company. Its experiments have successfully fulfilled its expectations for the future. Despite some unexpected results, in general, the company performance has been as expected. I think that it does make sense for the company to experiment with new formats because it has proved its capabilities in this area from experience.
Stop trying new opportunities would be an enormous error for Google. The previous activity is a worthy argument to those who think that this powerful company should not continue experimenting.
By improving the quality and the diversity of the advertising models the company has the opportunity to improve its whole performance and as a result its fame.