Thursday, April 24, 2008

Creating opportunities for small business to thrive

It's generally understood that Google's free products like Search, Gmail, and many others are supported by advertising. What is not as well known is that, in addition to providing useful products to our users, Google is a platform for and a partner to small businesses across America.

This morning David Fischer, our VP for Global Online Sales and Operations, will testify before the U.S. House Small Business Committee to explain just how Google has become an engine of economic growth and opportunity for hundreds of thousands of small businesses.

In his testimony, David will talk about how Google AdWords enables small businesses of all kinds to place ads for their products and services next to Google search results, giving them access to millions of our users around the world. Small businesses can set their own ad budgets and can arrange to pay only when users click on an ad. As a result, these businesses able to find and connect with new customers more efficiently and cost-effectively.

In addition to helping small businesses find customers and grow, Google's AdSense program has enabled web publishers, an entirely new generation of small businesses, to emerge and thrive on the Internet. As David's testimony puts it,

Our business model enables entrepreneurs, educators, bloggers, and many others to generate revenue by sharing their expertise and opinions with the world. In many cases, these individuals are able to dedicate themselves full-time to their publications because of the support they receive from our advertising programs.

The impact of Google's technology on the small business economy is significant. In 2007, for example, we paid $4.5 billion to AdSense partners who use our ads to earn money from their websites.

Behind those numbers are the real stories of people like Regina Fagan:

One of our Harlem, New York-based advertisers, Grandma's Secrets, has used our advertising tools to gain customers in the region where it delivers baked goods. A minority-owned business, Grandma's Secrets was started in 2001 when Regina Fagan built a website to capitalize on the love for baking she developed as a young child. By targeting her Google advertisements to the New York area, Regina has been able to turn a monthly Google advertising budget of $25 into $4,000 a month in revenue.

And as it turns out, Regina was able to use this revenue to purchase her first home and fulfill a lifelong dream of taking her daughter to Paris.

Finally, David will highlight the fact that small business success stories like Regina's are a powerful testament to the importance of maintaining a free and open Internet. The Internet's freedom and openness gave Google a chance to succeed when it was a brand new business, and it is giving hundreds of thousands of American small businesses today a chance to compete and thrive on the web as well.

UPDATE: Check out video below of David Fischer's testimony:

6 comments: said...

There are two sides to this story.

Of course David Fischer will only testify about the pros and successes, he won't reveal the cons.

Google is not always a friend to small businesses.

On the organic SERPs, small businesses are finding it increasingly difficult to compete with the large companies that dominate the highest rankings.

Their products and services are not necessarily the best, it is just that they have immense budgets for SEO and PPCs. They can hire TEAMS of inhouse and outsources SEOs.
They have large PR teams that can get their press releases in hundreds of outlets.

When these companies expand their products and services, they literally push the smaller Websites down the rankings.

Google has been insensitive to this.

Google's spam team has been insensitive to the desperate acts by some Webmasters to get some attention - to get CRUMBS - something to survive on.

The smaller Webmasters can not outbid the massive firms - who sometimes have MILLIONS of adwords.
They have professional online Marketers who spend millions annually to get as much ROI for their Websites as possible.

Because of Google's popularity, the fortunes of a company can be extremely affected by these inequitable policies.

There are no outlets for the small Webmaster to communicate directly with the Google hierarchy - only the large companies can network with Google's VIPs

To be fair, hopefully David will discuss THIS at the hearing and show ways that Google will overcome these challenges

Balaji said...

This is Vaddevolu Balaji Nagendra Kumar from Lee Kuan Yew School of Public Policy.
has misread Mr. David Fischer's comments.
This is what Mr Fischer actually intended to convey.

Firstly, google enables the targeted search for information.
IT is up to the user to search for what kind of information he/she wants.

For example,
There are customers who prefer home made bread and there are customers who prefer bread made on an industrial scale.
Those who prefer home made bread have the luxury of ordering small quantities and those prefering industrial bread order large quantities.
The choice is guided by the "Opportunity cost of time."

The second point refers to "Product Differentiation."
In the case of Bakery products, Ms. Regina targets the people who prefer home made products and who possibly want to buy fresh bread without addition of preservatives.

The third point refers to boundary of efficiency.
Boundary of efficiency determines the scale of operation of an enterprise.
While Mr. Fischer does not suggest that Ms. Regina's boundary of efficiency may not be limited to US$ 4,000 of revenue per month,
it suggests that a large Multi-National Corporation has a much larger boundary of efficiency due to large outreach.

The fourth point is what personifies.
Human being never satisfies.
In other words, Human being always wants more to satisfy the wants.
Human choice is much higher these times due to availability of diverse goods and services.
At-least the internet is letting people : viz : consumers know that there are more choices than what they otherwise are aware of.
In fact, television and radio broadcast industries help large companies alone.
It is unwise for to blame the internet search engines : viz : the google for which they are not responsible for.

want to advertise his/her home made product, Key Words like "Accessibility," "freshness," "one-to-one customer relationship" etc should be used to boost the chance of being noticed.
If only uses the key words : viz : "Bread," "Pan Cakes" etc, they would only end up being generic words hardly serving any business purpose.

Mr. Vaddevolu Balaji Nagendra Kumar
Can be reached at

elme said...

Ask Obama WHY he Voted FOR The Cheney Energy Bill (H.R. 6) passed in 2005)

Ask Clinton WHY she Voted AGAINST The Cheney Energy Bill.

Ask Obama if he is aware of the fact that nuclear waste disposal has been a 50 year
continuing NIGHTMARE; as exemplified by Rocky Flats and Hanford, Washington?

Ask Obama if its true that his legislative experience in the Illinois Legislature consists
of: 26 Bills, all passed in ONE year, AND if ANY of those 26 bills was Originated by, or, written by him.

WHY is MSNBC/NBC SO PRO-Obama, So Anti-Clinton?

ANSWER: Because Obama is PRO-Nuclear & he voted FOR the Cheney energy Bill; Clinton is NOT Pro-Nuke & Voted AGAINST the Cheney Energy Bill.

GE owns MSNBC/NBC ... & Thanks to the Cheney Energy Bill is planning to reap BILLIONS in proftis (Risk-Free) from building 29 new nukes AND from 30-40 years of Higher Electricity Rates.

Other participants in Cheney's NExt Big MONOPOLY POWER
---ENERGY RIPoff---
Excelon Corp. of ILLINOIS, Westinghouse (Owner of CBS), Entergy (owners of many utilities in the Southern States); 3 consortiums of nuke industry corporations.

McCain voted for the Cheney Energy Bill & has already said on the campaign trail: I have to remember to say ... its absoultely necessary for to build nuclear power plants.

GE, et al ... Are running Obama AND McCain for President.

If you think nukes are ok... just GOOGLE: Rocky Flats Denver plutonium, and, Hanford WA nuclear waste.
- - - - - - - - - - - - - - - - -
Obama claims 7 years experience in the Illinois legislature - Working Across the Aisles, Bringing people together to get good CHANGES passed -as exemplified by 26 good bills with his name on them.

A Chicago reporter says all 26 bills were passed in ONE Year, and they were NOT Obama's.

But what’s interesting, and almost never discussed, is that he built his entire legislative record in Illinois in a single year.

Republicans controlled the Illinois General Assembly for six years of Obama’s seven-year tenure.

Then Emil Jones Jr. (became the Senate Majority leader), He became Obama’s kingmaker.

Jones appointed Obama sponsor of virtually every high-profile piece of legislation, angering many rank-and-file state legislators who had more seniority than Obama and had spent years championing the bills.

During his seventh year in the state Senate, Obama ... sponsored a whopping 26 bills including many he now cites in his presidential campaign when attacked as inexperienced.

Working Across the Aisles/

Taking Credit for Other People's Work/
-------- ----- ----- ----- ------
Still have any doubt this election is about GE Cheney ... "the establishment" ... running Obama AND McCain for President in order to assure themselves of Pulling Off Cheney's NEXt Big Energy RIPOFF?

You think Obama's 20 year "friendship" with the Rev. Wright makes people suspicious of his ... spiritual ... beliefs?

Just Wait until his 20 year "friendship" with Rezko ... shows up on your TV screen - AFTER he gets the nomination, or, AFTER he's OUT of the race:

GOOGLE Info about: The 3 friends who attended engineering school in Illinois: Rezko Alsammarae Auichi:

Auichi (still a billionaire) convicted in a French court of MASSIVE fraud/looting involving
ELF a French petroleum company and the UN Oil for Food program.
Rezko business partner.

Alsammarae - convicted in an Iraq court (under its current govt) of LOOTING the Iraq ELECTRICITY Grid [while he was Minister of Electricity ... He was Appointed Electricity Minister by the Bush/Cheney ... Coalition Provisional Authority]. Rezko was...allegedly...his partner in LOOTING the electricity grid, and partners in planning to build a power plant in Iraq.

Last week's NEWS from the Rezko trial ... you didn't see on TV:

Federal prosecution witness testified that Obama and his wife DID attend a party at Rezko's home thrown in honor of Auichi.

Obama has previously said: He doesn't remember meeting Auichi.

The MEDIA is NOT asking him this question: Did you and your wife attend that Party?

Another prosecution witness testified that REZKO told him not to worry about the upcoming trial because the White House was going to fire the prosecutior (Patrick Fitzgerald) - to kill the criminal prosecution of Rezko.

COMMON DENOMINATOR : Natonal AND International ***ENERGY RIPoffs ***, Power Plants, Massive LOOTING - involving Bush/Cheney admin/ Rezko/ GE - That's a WHOLE LOT of REALLY BIG DIRT all the CORRUPT Politicans and their CORRUPT Media are desperately trying to keep covered up. Obama is part and parcel of it.

SAME Media that sold you Bush (2x). SAME Media that sold you on the Iraq War.

IIts Corporate-Controlled Media PROPAGANDA .... Designed .... to get YOU to "elect" a President who will COVERUP the PAST Bush/Cheny/Rezko LOOTING OF IRAQ .... and ....Pull Off the FUTURE Cheney nuke ENERGY RIPOFF.

TomLarryJr said...

I still don't see why sales on Google should be tax free when sales at Walmart is taxed. Both help small businesses (Walmart with cheap products that small businesses use and Google with cheap advertising.) If the objective is to help small businesses, than why don't they give the small businesses the tax breaks or better yet refundable credits?

jhone said...

I do not think this is also true. I think its a question of whether the system is used against you is called bad, but if you can use in your favor, then.

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littleChild said...

@TOm: are they really tax free? How lucky they are if that's the case. It shouldn't be like that if on the other hand those small businesses are paying for it.

What kind of business opportunities would come out with these differences?