The 4 Giants Shaped Internet as Marketing Platform

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

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

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

2012 Got $43 billion Gross revenues

97% = advertising

1998 Google launched

2000 Began to sell text advertising

2003 Introduced Adsense

2004 Set out to scan and index

2006 Acquired youtube

2007 Acquired double click

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?

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OFFLINE DIRECT

MARKETING

ONLINE

US MARKETER SPENT /YEAR IN USD

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 Digital Video and Rich Media Sponsorship and lead generation

$8.0 billion

$ 3.4 billion $ 2.7 billion

Display advertising on mobile devices Advertising in application Advertising on mobile websites

$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. 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...