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The 4 Giants Shaped Internet as Marketing Platform

Summarized by :
Dian Atika, Rafika Puar, Rery Indra Kusuma

Source:
Harvard Business School 9-513-060
Rev : December 12, 2013

Case Summary
Main Issue
Problem Statement
Analysis
Reccomendation

These 4 giants hold its own benefit advantage and shaped


marketing platform and capitalized at close to $1 trilion

Lead on
online
advertising

Lead on
Social
Engagement

Lead on
online
retailing

Lead on put
standard of
device
interface

Analysis: In the effort to keep


growing -Diverse and Competition
Online
Advertising

Retailing of
digital content

Digital
Television

Payment
system and
banking

The Modern Era Begins:

Becomes Profitable!

Y2014: rumoured to be entering smartphone market

Then came
1998
Google
launched

2000
Began to sell
text advertising

2012
Got $43 billion
Gross revenues
97% = advertising

2003
Introduced
Adsense

2007
Acquired
double click

2004
Set out to scan
and index

2006
Acquired
youtube

Keep growing...

http://cdn.churchm.ag/wpcontent/uploads/2011/08/apple-timeline-final.jpg

TRANSFORM THE INTERNET


EXPERIENCE
Facebook launched on 2005. It did not begin to grow until
about 2009. In just 2 years, it increase epidemicly from 2%
to 20%.
By 2013, 153 million people were visiting facebook
Facebook dominating time online
Most offacebook revenues come from advertising
Late in 2012, facebook launched its facebook exchange
It revenues $15billion on 2012

Search Engine
Marketing had revolutinized publishing, but
the desk-bound age was transitioning at
breathtaking speed to one that relied on
mobile device
Would search engine survive?

Social Network
Many sessions began with a visit a social
network.
How aggresively should marketing firms court
the favors of social-commerce platforms?

E-commerce:
Online Retailing
E-commerce mechants were paying a toll to
firms like Google and Yahoo! To drive traffic to
their online store.

Would the self-sufficient marketing systems of


online merchants like amazon let other
merchants by pass the tolls?

US MARKETER SPENT /YEAR IN USD


USD 200
USD 180

USD 160
USD 140
USD 120
USD 100
USD 80
USD 60
USD 40
USD 20
USD 0

OFFLINE

DIRECT
MARKETING

ONLINE

Online Advertising Spending in 2012


Media

Search advertising desktops and Laptops


Paid search
Search advertising on mobile devices
Paid search
Display advertising on desktops and laptops
Banners
Digital Video and Rich Media
Sponsorship and lead generation
Display advertising on mobile devices
Advertising in application
Advertising on mobile websites

Spending
$16.0 billion

$2.0 billion
$8.0 billion
$ 3.4 billion
$ 2.7 billion
$1.3 billion

Classified (e.g., auto and real estate listings,


jobs, auction listings, yellow pages)

$2.7 billion

E-mail (banners and links that appear in e-mail


newsletter and other commercial e-mail)

$0.4 billion

1.

2.

3.
4.

We can see that Google take role in every


segment of battle. Its a good step to make their
company bigger but Google should also
maintained their lead position in search engine
sector by innovation and technology.
Apple, Amazon, and Facebook has their own
leading sector. As google keep continue
acquistion to take share on rivals 3 markets, they
should find strategy to fight google rivality.
Marketing firms court the favors of socialcommerce platforms.
Self-sufficient marketing systems of online
merchants like amazon let other merchants by
pass the tolls will help their grow.

Thank You...