The inspiration for the brand name comes from Googol, a number represented by 1 followed by 100 zeros. It signifies the infinite space that Google operates in; one where a search engine has morphed into multiple revenue models.
But as Google looks at emerging markets like India, it realises the importance of collaboration – working with agencies to get an increasing share of the brand digital spends
In 2004, six years after Google was founded, Larry Page and Sergey Brin were flying to Spain in their private jet. The duo received news from Omid Kordestani , head of worldwide sales at Google. It wasn’t good; Yahoo had beaten Google as exclusive provider of ads for AOL’s European internet service.
Now, Google was eyeing Europe and Brin wanted to do his best to get his firm back in the reckoning. So he asked Kordestani to inform Philip Rowley, the head of AOL Europe that both Page and Brin were diverting their flight to London and would like to meet him personally. Rowley refused saying the deal was done.
Brin refused to take no for an answer. So from 30,000 feet, he directed Kordestani to guarantee Rowley that it will benefit AOL immensely if he would just hear out the co-founders and see what they had to offer. AOL agreed and they met in a nondescript hotel in London, far away from prying eyes.
Google put in a much higher bid involving millions of dollars to swing the deal in their favour. AOL informed Yahoo that the bidding process has been re-opened and Yahoo could make a counter offer if they so desired. Yahoo, obviously not too happy with the course of events, declined to enter into a bidding war.
Google sealed the deal with AOL Europe. The following incident, excerpts taken from The Google Story written by David Vise, gives an insight into the creation of the most powerful search engine and also into the minds of its cofounders.
The Google-AOL Europe deal, the book says was possible because both Page and Brin threw themselves in personally to ensure the turnaround. And in many ways, the move added to the aura surrounding the brand that’s become part of the daily lexicon.
The search engine was created by two technologists who believe in ‘not doing evil’. And yet they demonstrate a fine sense of business and what it takes to be good managers.
Add to that the refusal to delve deeply into how Google makes money? Its much talked about listing on Nasdaq, its run-ins with rival Microsoft and recently with Facebook, Eric Schmidt giving way to Larry Page as the CEO; all have added to the frenzy that’s Google.
And the brand’s attention is now on two markets – China and India. The China story may be that of a high internet penetration, but the India story as far as digital is concerned is still unfolding. And Google wants to ensure that it’s bang in the middle of it, rather than outside or even an alternative. But the going isn’t easy.
For Google that’s clocked over $31 billion in revenues has been battling the perception that its business model is an alternative to conventional ways of doing business. It certainly got other strategic partners to brand building nervous and the term ‘Frenemy’ firmly associated with Google. In India too, there were enough naysayers to Google’s search based advertising model and a little later, enough of them, who were intimidated by the idea.
However, the perception according to Shailesh Rao, MD, media & platforms – APAC & Japan, Google, has changed. For example, WPP spends about $ 1 billion in search advertising with Google and Sir Martin Sorrell recently commented that Google has become a ‘friendlier frenemy’ . “There was a general view of the unknown. Digital advertising was new and one wasn’t sure what it represented and what the relationship would end up looking like,” says Rao on the early days of Google’.
The view that Google was trying to be an alternative to the agency business is misplaced, says an official at Google who refused to come on record citing company policy. When search was created, the value proposition, he says, was that it was a sales channel for a lot of players who were dependent on the online space for their existence. “Thus from selling to these low hanging fruit, Google has moved to become an advertising channels for companies that operate offline, for example automotive, telecom etc.
As Google moved ahead, it realised the need for support from agencies to reach out to these advertisers.” Agrees a senior marketing official who adds Google has realised that if they want to talk to big ticket clients in India, they need to get agencies on their side. “And it was something that was not happening before . They were trying to do it themselves.”
From the point of view of a brand like Lenovo, Shailendra Katyal, director – marketing, Lenovo India says Google clearly is a friend. For example, a peek into Google search for laptops in June could be attributed to students searching to buy their first laptop for college, says Katyal.
Google according plays a role in the complete ‘path to purchase’ of a product. “An interested customer goes through a process of search-know more-compare-buy.