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Google's intimate knowledge of user data contributes significantly to its revenue growth. This knowledge allows Google to create detailed user intelligence that powers its advertising. Google's auction formula for advertising, where customers set prices, has earned the trust of corporate customers. This has led to an increase in paid clicks and revenue growth. For instance, in Q3 2016, Google had a 42% increase in paid clicks and grew its revenue by 23%, despite its revenue captured per click declining by 11%. This efficiency in pushing prices down makes it hard for competitors to keep up.
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Google's knowledge of our queries, emails, photos and other data helps it create intimately detailed user intelligence that powers its advertising. Its auction formula for advertising, where customers set prices, has earned the trust of corporate customers. In Q3 2016, Google had a 42% increase in paid clicks and grew its revenue by 23%, and yet, its revenue captured per click declined 11%. Google effectively improved its product by 42%, while making it cheaper for companies by 11% from the previous year and still growing revenues. Google's unparalleled efficiency in pushing prices down makes it hard for its competitors like Facebook to keep up.
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How do you gain a career edge in a world dominated by Big Tech? What makes “The Four,” namely Apple, Google, Facebook and Amazon, so incredibly succes...
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How do you know if a venture is worth your time, investment, and resources? Value, rareness, imitability, and organizational health are vital to determine long-term competitive advantage. The VRIO Analysis framework uncovers the internal resources that should be central to your organization’s overall strategy. Use this deck to identify the core capabilities that will ensure your ultimate success.
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