80 patterns Multi-sided platforMs The heart of Google’s business model is its Value Proposition of providing extremely targeted text advertising globally over the Web. Through a service called AdWords, advertisers can publish advertisements and sponsored links on Google’s search pages (and on an aΩiliated content network as we will later see). The ads are displayed alongside search results when people use the Google search engine. Google ensures that only ads relevant to the search term are displayed. The service is attractive to advertisers because it allows them to tailor online campaigns to specifi c searches and particular demo- graphic targets. The model only works, though, if many people use Google’s search engine. The more people Google reaches, the more ads it can display and the greater the value created for advertisers. Google’s Value Proposition to advertisers depends heavily on the number of customers it attracts to its Web site. So Google caters to this second group of consumer customers with a powerful search engine and a growing num- ber of tools such as Gmail (Web based e-mail), Google maps, and Picasa (an online photo album) among others. To extend its reach even further, Google designed a third service that enables its ads to be displayed on other, non- Google Web sites. This service, called AdSense, allows third parties to earn a portion of Google's advertising revenue by showing Google ads on their own sites. AdSense automatically analyzes a participating Web site’s content and displays relevant text and image ads to visitors. The Value Proposition to these third party Web site owners, Google’s third Customer Segment, is to enable them to earn money from their content. Google’s Business Model targeted ads advertisers targeted ads free search monetizing content advertisers web surfers content creators VP VP CR CR CH CH CS CS KP KP KA KA KR KR R$ R$ C$ C$ Google oΩers distinct Value Propositions to three interdependent Customer Segments targeted ads advertisers targeted ads advertisers free search web surfers free search web surfers content creators monetizing content content creators bmgen_final.indd 80 6/15/10 5:35 PM