Case Study ­ GOOGLE in 2008 1. Why has the pay­per­click search business grow so rapidly? The reason have to start with Gross’ way thinking, as GoTo.com broke down in to two strategies to attract advertisers: First, they charge advertisers only when somebody clicked on a link and was directed to the website, this is the launching point of pay­per­click, which would make advertisers easier to evaluate their performance of the ads, rather than spending lots of money without knowing the real ROI. Second, the GoTo.com priced the keywords low ($0.01 per click), therefore attracting many audience to join the network, and being the affiliates. Once this efficient business model be used by more advertisers, it will definitely …show more content…

Plus, Google further offers personalized features and expand service range like desktop search and Gmail, etc., which grasped users attention and reliance. GoTo.com did not apply a strategic business model like Google did. They just developed as the way it goes. They didn’t build up a goal and set strategies to achieve it. Moreover, they even changed their name into Overture, which means they are transferring into a different managing condition but still end up unsuccessful. 5. Does the par­per­click business model pioneered by GoTo.com and Google constitute a paradigm shift? How? What are the implications for other enterprises? Since the market trend changes dramatically, the pay­per­click business model pioneered by GoTo.com and Google are definitely facing the same challenges, and the firms which develops a innovative technology and changes the way of industry functions gets the majority fo market share. As for the innovative technology, Google launched two key applications : pagerank algorithm and click­through rate(CTR) business model. The pagerank algorithm made the search results more accurate, and the click­through rate business model which allowed websites with better sales to have more appearance on the top of the list, thereby successfully driving traffics to their search