Paul F Burgueño

New business models on the net: Google's case

The assembly hall of the Polytechnic University of Madrid today has been a meeting place for students and guests interested in the Google business model. The company he founded several years ago Sergey Brin and Larry Page, has relied on Jose Maria Garcia-Director of the Division Multisector Google Spain, the work to convey to the audience a positive and open view of the company, explaining some of its services and making emphasis on the evolution of digital media to development for and by the client. Thus, Google not only has opted to put people at the heart of your business but, in turn, allows them to interact and create content to develop a complex set of functional tools and free it is, at bottom, what gives value to the brand and user experience.

The paper of Jose Maria Garcia has tried several highlights fundamentally the business model of the company's search tools, operation of Adwords, comparative studies of trends through Google Trends and developments in Youtube and other Google services.

In particular, I am left with three basic ideas. First, Google is a company that has decided to bet on a business model based on freedom, not censorship and the democratization of the network. These decisions sometimes clash with radical political views or individual decisions to create inappropriate content on services like YouTube or Google Video. During Question Time became clear that both a highly permissive posture as a more restrictive and even closer to the prior scrutiny of the contents clutched a large part of the audience. Thus, Google is facing difficult decisions every day where you have to choose between items as basic as freedom of establishment or consultation and the philosophy of respecting the laws and ethics or public order. Professor Jorge Pérez Martínez hinted at this point his fear as a political scientist at the spotlight by the search giant of selectivity and organization of information generated worldwide to what Jose Maria responded with a look: "Don 't be evil ".

Second, I highlight the complexity of the relevant advertising system Adwords from Google. This afternoon I understood better the tool a few years I have been using to generate ads on the art magazine Vilnius, in the form of Google and theme-oriented pages in the middle. To sum up a few lines in operation, one can say that Adwords uses two processes in their selection and placement of ads: auction and quality score. The first is an auction-based system whereby the advertiser to more bids on a particular word you see their ad rather than one that bids less. The second approach takes as the click through rate (CTR) or quality index, ie the satisfaction of the result to the user. Thus, an advertiser that has less budget than another, it could obtain a more advantageous position in the space of sponsored links if your ad achieves a higher quality index than the other ads in the same category.

Third, I keep the tool Google Trends that, until now, been used only to browse search trends of certain words, bands or brands of cars. The functionality offered to conduct meteorological Trends by keywords such as "air conditioning" or see how some disclosures of the health of celebrities can cause words like "breast cancer" generate search really curious peaks in time is Statistical an area of immense importance for anyone wishing to make timelines of cyclical events, political studies, sociology, medical ...

In short, it has been for me a real luxury to have Jose Maria Garcia during Monday afternoon. And so the opportunity to agradecezco Professor Jorge Pérez Martínez-moderator of the Day, the Chair Red.es and UPM, headquarters of the paper. Thank you very much and I hope we will soon coincide.