On a sleepy summer Monday, the world’s most innovative Fortune 50 company announced a massive restructuring under a new entity called “Alphabet, Inc.”
Yikes! What does this mean for sales professionals currently targeting Google? Where do you focus? What is their strategy? How does this change things?
Don’t fretů LeadBridge analysts are starting work today on the Alphabet Inc. PipelineIQ account profile (Reserve Now) to help you navigate this complex target account. We will break down this new entity’s organizational structure, leadership, business goals and competition/challenges across each operating segment and industry they compete in. It’s guaranteed to help enterprise sales professionals resonate better with your prospect — our sales intelligence helps you align your product or service directly with Alphabet’s business goals and strategy. It’s smarter selling!
In the meantime, here are three quick takeaways that salespeople today need to know about Google. It’s as easy as A-B-C:
Advertising Still Rules — Search advertising (display ads and mobile ads) makes up about 90% of Google’s revenue. With 24% profit margins, Google’s core business is a giant ATM machine that funds everything else they do. So when investors see profit from the core Google business flowing to things like drone delivery, self-driving cars, and life-extension biotech research they get a little spooked. Especially at a time when Google is fighting off major threats to it’s core business — some users go straight to Amazon to search for products, and Facebook is introducing video ads to compete with YouTube.
Breaking Out the Core Business — When the restructuring is final, a slim-downed version of Google will survive as a direct, wholly owned subsidiary of Alphabet, Inc. The core Google business will include ads, search, maps, apps, YouTube and even Android. Other Google Businesses will be run independently such as Calico, Nest, Fiber, Google X, and finance arms Google Ventures and Google Capital. Similar to how Amazon recently broke out AWS earnings in its financial reporting to highlight it’s growth, this maneuver of splitting off the financial reporting segments will allow the health of the core Google business to be evaluated without the distraction and expenses associated with funding these side ventures. This new structure will also make future spin-offs and acquisitions easier — 180 companies have been acquired by Google since 2001.
Cost-Per-Click Still Declining — Users spend more time on smartphones and tablets than ever before. As a result, the majority of searches are on mobile devices vs. traditional desktops, where Google dominates the online ad world. Since marketers pay less for mobile ads, this has meant slower revenue growth for Google’s online ads. Competition is fierce to capture this exploding mobile advertising market. Bloomberg touts new Google CEO Sundar Pichai as the “Most Powerful Man in Mobile,”and his ascension to the C-suite is timely. Under Pichai’s leadership, expectations will rise at Google to still dominate in a world where the desktop is becoming a dinosaur.
The PipelineIQ account profile on Alphabet, Inc. will be available for purchase starting September 30th.
Rick Catino Jr. is the Founder and CEO of LeadBridge, the leader in global account intelligence. To learn more about LeadBridge, please contact email@example.com.← Back to Blog