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 Lead on Lead on Lead on put

online Social online standard of
advertising Engagement retailing 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 2000 2003 2004
Google Began to sell Introduced Set out to scan
launched text advertising Adsense and index

2012 2007 2006

Got $43 billion Acquired Acquired
Gross revenues double click youtube
97% = advertising

Keep growing...
 http://cdn.churchm.ag/wp-
content/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 ONLINE
MARKETING
Online Advertising Spending in 2012
Media Spending
Search advertising desktops and Laptops
Paid search $16.0 billion
Search advertising on mobile devices
Paid search $2.0 billion
Display advertising on desktops and laptops
Banners $8.0 billion
Digital Video and Rich Media $ 3.4 billion
Sponsorship and lead generation $ 2.7 billion
Display advertising on mobile devices
Advertising in application $1.3 billion
Advertising on mobile websites
Classified (e.g., auto and real estate listings, $2.7 billion
jobs, auction listings, yellow pages)
E-mail (banners and links that appear in e-mail $0.4 billion
newsletter and other commercial e-mail)
1. We can see that Google take role in every
segment of battle. It’s a good step to make their
company bigger but Google should also
maintained their lead position in search engine
sector by innovation and technology.
2. 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.
3. Marketing firms court the favors of social-
commerce platforms.
4. Self-sufficient marketing systems of online
merchants like amazon let other merchants by
pass the tolls will help their grow.
Thank You...