INDUSTRY

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Paid Search Drives Growth

Paid Search has become the most important component of online advertising, and in 2010 this segment accounted for $29.8 billion, about 49% of total revenues and up 16.5% from 2009 totals on a constant currency basis. Google is the global leader in paid search, although in the fastest-growing paid search markets of China and Russia, the leading paid search providers are domestic players Baidu and Yandex.

Consumers Not Directly Driving Growth

Although an increasing number of consumers are spending more time online globally, analysis indicates this is not a direct driver of increasing online ad revenues. Rather, a rising number of small, niche-oriented businesses, competitive intensity between advertisers within similar brand-categories, and the increasing online presence of large brands who otherwise prioritize television advertising are all fueling growth in online ad revenues.


HISTORY AND CURRENT SITUATION OF GOOGLE
Google began in March 1996 as a research project by Larry Page and Sergey Brin, Ph.D.students at Stanford[1] working on the Stanford Digital Library Project (SDLP). The SDLP's goal was “to develop the enabling technologies for a single, integrated and universal digital library." and was funded through the National Science Foundation among other federal agencies.[2]


PRESENT SITUATION

Advertising
Ninety-nine percent of Google's revenue is derived from its advertising programs.[111] For the 2006 fiscal year, the company reported $10.492 billion in total advertising revenues and only $112 million in licensing and other revenues.

SEARCH ENGINE
Google Search, a web search engine, is the company's most popular service. According to market research published by comScore in November 2009, Google is the dominant search engine in the United States market, with a market share of 65.6%.[126] Google indexes billions[127] of web pages, so that users can search for the information they desire, through the use of keywords and operators