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Google Office In Moscow, Russia
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Advertising
Ninety-nine percent of Google's revenue is derived from its advertising programs. For the 2006 fiscal year, the company reported $10.492 billion in total advertising revenues and only $112 million in licensing and other revenues. Google has implemented various innovations in the online advertising market that helped make them one of the biggest brokers in the market. Using technology from the company DoubleClick, Google can determine user interests and target advertisements so they are relevant to their context and the user that is viewing them. Google Analytics allows website owners to track where and how people use their website, for example by examining click rates for all the links on a page. Google advertisements can be placed on third-party websites in a two-part program. Google's AdWords allows advertisers to display their advertisements in the Google content network, through either a cost-per-click or cost-per-view scheme. The sister service, Google AdSense, allows website owners to display these advertisements on their website, and earn money every time ads are clicked.
One of the disadvantages and criticisms of this program is Google's inability to combat click fraud, when a person or automated script "clicks" on advertisements without being interested in the product, to earn money for the website owner. Industry reports in 2006 claim that approximately 14 to 20 percent of clicks were in fact fraudulent or invalid. Furthermore, there has been controversy over Google's "search within a search", where a secondary search box enables the user to find what they are looking for within a particular website. It was soon reported that when performing a search within a search for a specific company, advertisements from competing and rival companies often showed up along with those results, drawing users away from the site they were originally searching. Another complaint against Google's advertising is their censorship of advertisers, though many cases concern compliance with the Digital Millennium Copyright Act. For example, in February 2003, Google stopped showing the advertisements of Oceana, a non-profit organization protesting a major cruise ship's sewage treatment practices. Google cited its editorial policy at the time, stating "Google does not accept advertising if the ad or site advocates against other individuals, groups, or organizations." The policy was later changed. In June 2008, Google reached an advertising agreement with Yahoo!, which would have allowed Yahoo! to feature Google advertisements on their web pages. The alliance between the two companies was never completely realized due to antitrust concerns by the U.S. Department of Justice. As a result, Google pulled out of the deal in November 2008.
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