Inside the Mind of Google

CNBC

Aired on Tuesday, Apr 13, 2010 (4/13/2010) at 05:00 PM

Video and Thumbnails

Transcript

00:00:00M.
00:00:01>> Well, you feel that energy when you're walking around.
00:00:03>> And we work hard to maintain that.
00:00:05What you see is a culture where people feel that they can build things, that they can actually accomplish what they want.
00:00:10And ultimately people stay in companies because they can achieve something.
00:00:14>> What you're building, then, is a dictionary that says this ..
00:00:17>> Of that chinese term.
00:00:18..Of something over there.
00:00:19>> Yeah.
00:00:20>> Google's success comes from attracting the best possible employees and then making work irresistible.
00:00:26..
00:00:29Lots of fun.
00:00:31>> [ Laughs ] >> high five, google.
00:00:33>> If you're restless, there are gyms.
00:00:35If you're stressed, there are massages.
00:00:39..
00:00:40There's the food.
00:00:43>> How we doing, chef?
00:00:44>> Good. how are you?
00:00:45>> Good, good. busy, busy.
00:00:47>> We have a team of seven executive chefs here in mountain view, and we have about 18 cafés in whole that we oversee.
00:00:52>> Maybe you'd like indian cuisine today or sushi.
00:00:57No problem.
00:00:58Google has it all.
00:01:01And best of all, everything's free -- for employees, that is.
00:01:05It costs google a fortune.
00:01:07Those are expensive benefits.
00:01:09What's the business justification?
00:01:11>> It's a simple argument.
00:01:12We want them working all the time.
00:01:14And so if they're off doing other things, we don't have their attention.
00:01:17>> Keeping your attention on work means keeping it off the mundane stuff.
00:01:22Like your laundry.
00:01:24Google will do that.
00:01:25Or your commute.
00:01:26Google will drive you.
00:01:29And don't ever sweat your wardrobe.
00:01:31Google is strictly casual.
00:01:33You don't even have to shave if the queen of england herself comes by.
00:01:37>> If we do a search for ..
00:01:39>> And she did.
00:01:40>> It's phenomenal.
00:01:41If you're 24 and single, it's kind of like programmer nirvana.
00:01:45>> Engineer noel gorelick runs google's mars, moon, and sky programs.
00:01:51He spent 19 years working with nasa, but however impressive his résumé, at google, he's just one more bright mind in a sea of 20,000.
00:02:01>> I did my masters in computer science.
00:02:04I used 12 textbooks during my courses.
00:02:0710 Of those -- 10 of the guys that wrote those textbooks work here.
00:02:11>> Whoo!
00:02:12>> Whoo!
00:02:12>> This is the culture created in 1998 by a pair of stanford university grad students, sergey brin and larry page.
00:02:21>> When we were trying to name google, we actually went through thousands of names.
00:02:25And we had settled on "google" because it sounds fun.
00:02:29It also means a very large number.
00:02:31It means 1 followed by 100 zeros.
00:02:33>> What started out as a research project has become this -- a high-tech juggernaut and one of the most successful companies on the planet with an array of cutting-edge products.
00:02:45There's google voice, google chrome, google images, and google news.
00:02:49There's google book search and google maps.
00:02:54AND THEN THERE'S YouTube, WHICH Google owns, home to 20 hours of new video uploaded every minute.
00:03:01But all that pales in comparison to google's crown jewel and its greatest creation, the google internet search engine.
00:03:10If you used it to find a google expert, you might come up with this man, author john battelle.
00:03:16You've studied the company for so long.
00:03:19Give us a sense of what google is, how successful a phenomenon it is.
00:03:22How would you characterize it?
00:03:23>> Most successful company in the history of the world.
00:03:26I think that's fair.
00:03:27>> The most successful company in the world?
00:03:30>> I think that's true.
00:03:31I think it's inarguable.
00:03:32Now, if you look at past histories, microsoft, I think, rivals google for a period of time, right?
00:03:39FROM THE LATE '80s THROUGH THE MID '90s, ITS GROWTH WAS QUITE Similar.
00:03:43I do not believe it had the same profit curve, though.
00:03:46The profits that google has managed to create are extraordinary.
00:03:49>> In 2008, google earned more than $4 billion in profits, with more than 95% of that coming from advertising tied to its search engine.
00:04:00What makes it so good?
00:04:02In simple terms, a basic search engine crawls the internet, bouncing from link to link, indexing as many web pages as it can.
00:04:11When you do a search, it stacks your results based on the number of times your search term appears in each site.
00:04:18Google's master stroke was to rank every website's importance by counting the number of other websites linking back to it.
00:04:26Google figured the more links to a site, the more important it must be and the higher it should show up in your search results.
00:04:34They call this approach "page rank," after larry page, and it worked brilliantly.
00:04:40>> I'm sure you remember, as do i, you know, being told, "hey, " and when you go there and use it for the first time, it just works, and something happens between your ears that makes that brand valuable to you instantly.
00:04:53'Cause a service is delivered that is delightful.
00:04:55>> However complex the math behind it, google's hallmark is simplicity.
00:05:01Its home page is as friendly and unthreatening as a box of crayons.
00:05:05And this is the person who keeps it that way, a 34-year-old human ..
00:05:10>> We're going this way. sorry.
00:05:12..Named marissa mayer.
00:05:13>> I want to see a much more robust brainstorm.
00:05:16I feel like we didn't really explore other ideas here.
00:05:19>> She's tireless, hard-driving, and demanding.
00:05:22>> I agree with the problem statement.
00:05:24I don't agree with the solution.
00:05:25>> She's also been with the company from the very start.
00:05:28What was it about larry page and sergey brin that prompted you to sign on with, at the time, this funky, little, unknown, small company named google?
00:05:39>> Well, I think there were two key factors in my decision.
00:05:42One is I think you should work with the smartest people you can find, and, two, I think you should do things that you're not ready to do.
00:05:49>> How did you know you weren't ready for it?
00:05:51>> You know, at the time when i was interviewing, it was just an eight-person startup.
00:05:54You know, they were printing their own business cards.
00:05:57Them also coming in and saying, "well, we think search could change the world.
00:06:00We think it can change every person's life, and we think everyone should be doing " I really believed that, but at the same time, that was so far away.
00:06:09At google, obviously, we're always trying to strive for new heights, trying to really reach for the stars.
00:06:14And so we have a fun demo which is about the stars.
00:06:17>> Mayer's official title is vice president search products and user experience.
00:06:22But her chief role is keeper of google's look.
00:06:25>> We want to actually cause search to be something that's fun, that's an expression of creativity that people do every day.
00:06:31>> She is relentless in making sure everything google is simple, uncluttered, and, above all, clean.
00:06:38>> Why is that look so important?
00:06:39>> Well, I think that it says to our users that we don't want to get in their way.
00:06:43We want an experience that's fast and clean and easy, where it's just obvious.
00:06:47Type what you want into the search box, and you'll get it.
00:06:50>> IN THE LATE '90s WHEN OTHER , AND AltaVista CRAMMED THEIR Websites with links and ads, google's plain, blank look was actually a problem for the students who first tested it.
00:07:04>> THEY WOULD GO TO google.com, Load up the page, and it would be blank.
00:07:09And they would just wait.
00:07:12And 15 seconds later you'd be like, "what are they waiting for?
00:07:15Maybe they're thinking of " 30 seconds later, you'd be like, " 45 seconds, and you'd be like, "okay, I really am going to have to ask what are they waiting " and the answer was the same all 16 times that day.
00:07:28"We're waiting for the rest of " >> today, nearly 2/3 of the internet searches done worldwide, almost 2 billion a day, are done on google.
00:07:41>> What's your favorite internet search engine?
00:07:43>> Google.
00:07:43>> Google.
00:07:44>> Google.
00:07:44>> Google.
00:07:44>> Google.
00:07:45>> Google.
00:07:45>> Google.
00:07:46>> Google.
00:07:46>> Google.
00:07:47>> Whether you're in mongolia, ..
00:07:52..
00:07:54>> Google.
00:07:55>> And that's despite some formidable competition.
00:07:57Rival microsoft has launched a massive campaign to promots new bing search engine, which has slowly gained market share.
00:08:06>> Bing.
00:08:07>> It's not just a search engine.
00:08:08It's the first ever decision engine, from microsoft.
00:08:11 and microsoft have also inked a deal to pool their search efforts, which could create a tough challenge to google.
00:08:18>> We're one click away from customers leaving us.
00:08:21We face very, very tough competition.
00:08:23I'm very, very proud of what google has done.
00:08:26But never rest on your laurels.
00:08:28Always worry and always drive as hard as you can.
00:08:30>> Google is no longer a start-up, and larry page and sergey brin are no longer grad students living on fast food and credit cards.
00:08:38Today they're worth $15 billion each, according toforbes magazine.
00:08:43Brin, who emigrated from russia at age 6, told us he never thought google could be this successful.
00:08:49>> No, certainly not.
00:08:51We've been, as a company, obviously, more lucky than any company deserves to be.
00:08:57And we've been fortunate enough that when we're able to improve some aspect of people's lives that we believe we'll be able to make a solid business out of that.
00:09:09>> Solid indeed.
00:09:10And marissa mayer, who was the 20th employee hired at google, hasn't done too badly herself.
00:09:16This company has made you fabulously wealthy, hasn't it?
00:09:20>> I think that, you know, the success that we've experienced here at google has been overall great.
00:09:24>> It's pretty extraordinary.
00:09:26>> [ Chuckles ] >> it may be hard to believe all this stems from something as innocuous as a thing cal "google," but underestimating any of the creative minds here has never been a good idea.
00:09:39.
00:09:42In 1998, they had a chance to turned it down.
00:09:53>> People turn to the search-engine box and admit things to it that they would not admit to their doctor, their shrink, their priest, their wife or husband, without a thought that all of these queries are being stored.
00:10:08>> People are treating google like their most trusted friend.
00:10:10Should they be?
00:10:12>> Well, I think judgment matters.
00:10:14And if you have something that you don't want anyone to know, maybe you shouldn't be doing it in the first place.
00:10:52engine far.
00:10:54One way I can take care of my engine?
00:10:56One a day men's -- a complete multivitamin for my overall health.
00:10:59Plus now it supports my heart health and helps maintain healthy blood pressure.
00:11:03[ engine revs ]WHOA.
00:11:04[ Man ] KINDA MAKES YOUR HEART RACE, HUH?
00:13:28>> That plain, simple address google.com HAS BECOME OUR PORTAL To the world.
00:13:35You can use it to find out how ..
00:13:37>> Tuck the middle of the loose end behind the bow.
00:13:40..Or to get a football score.
00:13:42It can also help you with more personal issues, like finding a divorce lawyer, researching a medical problem, even getting a date.
00:13:50And for all this, the world's most powerful technology company charges us nothing.
00:13:56But that doesn't mean it's free.
00:13:58The real cost may be in users' privacy.
00:14:02>> I think most of them have not ever consciously thought of the privacy tradeoff that they are making.
00:14:09I don't think they recognize that these products aren't really free but that, in fact, you are trading your privacy for these services.
00:14:18>> The decision to invoke the ..
00:14:19>> Kevin bankston is a senior attorney at the electronic frontier foundation in san francisco.
00:14:24He's worried about how much google knows about you.
00:14:28>> Google keeps every search query -- what you type into the box -- forever.
00:14:34They have every query ever since, you know, they started running this on a few boxes at stanford.
00:14:41The question is whether that data's identifiable to you.
00:14:46>> It's no secret that google keeps its users' search terms.
00:14:50They say they analyze that data to refine their search engine and other programs.
00:14:55Marissa mayer is a google vice president.
00:14:58>> If I'm a google user, you have years' worth of my search terms, stuff that may contain all kinds of incredibly personal data.
00:15:05If I use other google services, you can see the contents of my e-mail, my documents, my spreadsheets, my personal photos, my voice mail, even the contacts in my address book.
00:15:14You guys really know everything about me.
00:15:17>> Well, we don't know everything about you.
00:15:19But I think the most important thing -- >> no, but me being anyone.
00:15:22>> Most of these products -- in fact, all of these products, our philosophy is transparency, choice, and control.
00:15:29Be very transparent about what data you have associated with that particular user.
00:15:34Give the users very clear choices about whether or not to use the product at all.
00:15:39And then give them control over their data.
00:15:41Because we really do believe that the users own their own data and they should be able to control it.
00:15:46>> That may be google's policy, but it's not the law.
00:15:49No one really owns the data, but google controls it, and the volume of it is staggering.
00:15:56>> This is the geo display.
00:15:57Each dot is a query, each color is a language.
00:15:59>> Almost 2 billion google searches are done every day.
00:16:03>> This is actually the live queries right now.
00:16:06>> That has created an astoundingly intimate database of who we are and what we think.
00:16:11>> People turn to the search-engine box and admit things to it that they would not admit to their doctor, their shrink, their priest, their wife or husband, or anyone else without a thought that all of these queries are being stored.
00:16:30>> If that doesn't give you pause, seton hall law professor frank pasquale has a suggestion.
00:16:36Imagine someone reading through a list of every google search you've ever done.
00:16:41>> There are things that can be misinterpreted or that could somehow shed a bad light or shed a false light on somebody.
00:16:48You may just be interested in a certain topic, but they may associate you with a topic, like terrorism or something like that.
00:16:54If you're doing a school report on that, that would be tough if you ultimately found yourself on, say, some tsa watch list because it ended up getting to the tsa.
00:17:02>> Yeah, but isn't a search done on google completely anonymous?
00:17:06>> It depends.
00:17:07If you're signed in, it's definitely not anonymous.
00:17:09If you're not signed in, that search will at least be connected to your ip address, which is the unique address of your computer on a network.
00:17:15>> Privacy advocates say the digital footprints we leave behind from cellphones, gps devices, and search engines, just to start, have created a huge array of targets for prying eyes.
00:17:28Not just for marketers and hackers, but also the government and law-enforcement officials pursuing terrorists and other criminals.
00:17:37>> Police! don't move!
00:17:38>> Don't move!
00:17:39>> The fourth amendment protects citizens from unreasonable search and seizure.
00:17:44But the government has argued that it doesn't protect data handed over to a third party, like google.
00:17:51Can the government tell google it wants, it demands all the information that google has collected from any particular person who has done searches?
00:17:59>> I believe that if you look at some of the examples of prosecutions in divorce actions there that the answer would be yes, that because of something called the third-party doctrine, our fourth amendment law doesn't apply to a lot of things that you do online.
00:18:13>> In fact, the electronic frontier foundation estimates that google is subpoenaed in lawsuits, criminal cases, and intelligence investigations tens of thousands of times of year.
00:18:25Though it sometimes fights these requests, google is compelled to reveal its users' information in some cases.
00:18:32The company declined to tell us how often that happens.
00:18:35People are treating google like their most trusted friend.
00:18:38Should they be?
00:18:40>> Well, I think judgment matters.
00:18:42>> Eric schmidt is google's c.e.o.
00:18:45>> If you have something that you don't want anyone to know, maybe you shouldn't be doing it in the first place.
00:18:50But if you really need that kind of privacy, the reality is that search engines, including google, do retain this information for some time.
00:18:58And it's important, for example, that we are all subject in the united states to the patriot act.
00:19:02It is possible that that information could be made available to the authorities.
00:19:07>> The patriot act expanded one of the government's most powerful surveillance tools, the so-called national security letter.
00:19:15It allows law-enforcement and intelligence agencies to see your internet activities without a judge's oversight.
00:19:22That's what worries kevin bankston -- government access to google's data.
00:19:28>> Those in power have abused their surveillance authority as a matter of routine as you look through u.s. history.
00:19:36It's why we have the laws that we do.
00:19:39>> But eric schmidt says protecting user privacy is google's top priority.
00:19:44Where does all my search info go?
00:19:47>> Well, first place, we have -- our privacy policies are fully disclosed on our websites and it's all written down very carefully.
00:19:55The most important thing we do is that after 18 months, the search information that you entered is so-called anonymized.
00:20:02It's literally gotten rid of and we can't go back and track it back to you.
00:20:06>> The data may seem anonymized, but if you combine it with enough other data, you can develop a pretty good profile of people, particularly, say, people in rural areas where there may not be that many internet users.
00:20:17>> That's what happened in 2006, not with google but with aol.
00:20:23In an attempt to aid scholars, aol released a huge sample of anonymized search data, apparently without realizing it could be used uce the identities of users.
00:20:34>> I had no idea.
00:20:35I couldn't find my own searches if I tried.
00:20:38>> People like candace carpenter of brooklyn.
00:20:42She had done aol searches involving her legal work, her daughter's interests, and her family history.
00:20:47Much to her surprise, that supposedly anonymized data was enough to lead us straight to her.
00:20:54>> I don't like the thought that my daughter's gonna be evaluated based on searches I'm doing, but I can see that could happen, and I certainly don't want people being able to find my daughter.
00:21:03>> Google has not had a similar incident.
00:21:06>> Right now google hasn't harmed anyone, doesn't really generate nightmares or tragedies.
00:21:15But who's to say what google is gonna be like in 5 or 10 years?
00:21:18..
00:21:20>> Siva vaidhyanathan is a professor of media studies and law at the university of virginia.
00:21:26>> We cannot rely on how much we trust this company.
00:21:29It's great that we trust them now.
00:21:31It's great that we use them now.
00:21:33But let's be careful about this, because companies don't last.
00:21:38>> The concern, experts say, is that google or pieces of its database could someday be sold or spun off or end up in different hands or that the company's priorities and policies could simply change over time.
00:21:53Worries over google and privacy become even more troubling to critics given that google is big and only getting bigger.
00:22:00>> There's no reason to think that in five years google won't essentially be the equivalent of the web itself, because it's active in so many different areas of the web, including hosting web publishing and web video and so forth.
00:22:12>> Google's size and its ever-expanding reach have even attracted the scrutiny of the u.s. department of justice.
00:22:20Google says it's unwarranted.
00:22:22Do you see google as the most powerful company in the world?
00:22:25>> No, not at all.
00:22:27>> You have a lot of information, though, about people.
00:22:30>> But we don't use it, and we don't misuse it.
00:22:33We could misuse it, but if we did, we would quickly become much less powerful because everyone would flee to our competitors.
00:22:40So part of the answer to the criticism that's implied by your question and the direct ones by others is that if we broke our trust with our end users, they would leave, and then we wouldn't be very important anymore.
00:22:57>> These mobile phones have eyes -- they've got a camera.
00:23:00They've got ears -- every one of them has a microphone.
00:23:03They've got skin -- you can touch them.
00:23:05And they're increasingly augmenting our own senses.
00:23:08>> The idea is you see something that interests you, you whip out your camera phone, take a picture of the object of interest, and this will trigger a google search.
00:24:36(announcer) the business.
00:24:37But we're also in the showing-kids- new-worlds business.
00:24:41And the startup-capital- for-barbers business.
00:24:45And the this-won't- hurt-a-bit business.
00:24:47Because we don't just work here.
00:24:49We live here.
00:24:51These are our families.
00:24:52And our neighbors.
00:24:53And by changing lives we're in more than the energy business we're in the human energy business.
00:25:02Chevron.
00:25:21Aflac is not more benefits atgreater cost to your company insurance.
00:25:26Aflac is not how do I fit it inmy company's budget insurance.
00:25:29Aflac is help protect and carefor your employees at no cost to your company insurance.
00:25:34With Aflac, your employees payonly for the coverage they want or need.
00:25:38And, the cost to you - nothingat all.
00:25:41If all you know about us is...
00:25:43DUCK: Aflac!
00:25:44...then you don't know quack.
00:25:45To find out why more businessesprovide Aflac, visit getquack.com.
00:26:39>> And your sim card.
00:26:41>> Congratulations.
00:26:42Here's your phone.
00:26:43>> Cool.
00:26:43>> [ Chuckles ] >> don't look now, but that unassuming guy in the t-shirt handing out free google ..
00:26:50>> I'll give you your phone far less professionally than it ..
00:26:53..Is actually one of the wealthiest and most powerful business leaders in the world.
00:26:58>> I'd like to introduce sergey brin, who's gonna be joining us.
00:27:01[ Applause ] >> hello.
00:27:04>> Why would sergey brin, one of the two billionaire cofounders of google, bother showing up at some mobile-phone conference?
00:27:13Because for google, the stakes couldn't be higher.
00:27:16Mobile-phone use is skyrocketing, more than 4 billion worldwide with a billion sold in 2008 alone.
00:27:24Brin wants to make sure android, google's operating system for mobile phones, gets a big piece of that market.
00:27:31>> If you can't look at the search results on your cellphone reasonably because the browser is not capable enough or the application's sophistication is not good enough, then we can't really deliver you that information when you're using your phone.
00:27:46But android has allowed us to bridge that gap.
00:27:50>> The conference been good for you guys?
00:27:51>> Yeah, it's been great.
00:27:53>> Brin has tapped this man, vic gundotra, to make sure that as the world goes mobile, google goes with it.
00:28:00Why is it so important for google to have a major presence on cellphones?
00:28:04>> We are seeing a very fundamental shift, where increasingly, particularly among a young demographic and in asian countries, the primary access to the internet is not through the pc but through mobile devices.
00:28:18>> Google first put its android software in phones in 2008.
00:28:23Other manufacturers like motorola, samsung, and even dell are now jumping on the android bandwagon.
00:28:30But it'll still be a struggle for google android to challenge the 800-pound gorilla of mobile phones, apple.
00:28:38>> A new iphone 3g.
00:28:41>> Apple's iphone, with its vast market of software applications, or apps, has huge momentum in the world of so-called smartphones, which act more like handheld computers and web browsers than simple cellphones.
00:28:54>> In some respects, we're past the era of the pc and into the era of extrasensory computing.
00:29:01These mobile phones have eyes -- they've got a camera.
00:29:04They've got ears -- every one of them has a microphone.
00:29:06They've got skin -- you can touch them.
00:29:09And they're increasingly augmenting our own senses.
00:29:13>> So far, there are roughly 10,000 apps available for google android.
00:29:18>> It's called "pocket auctions" FOR eBAY.
00:29:20And it's essentially a MINIATURIZED VERSION OF eBAY ON Your android handset.
00:29:24>> 10,000 Apps sounds pretty impressive, until you consider that the apple iphone has more than 100,000.
00:29:32>> Hi.
00:29:32>> Hi. how you doing?
00:29:33>> What have you got there?
00:29:34>> To beef up google's offerings, gundotra has to convince software developers and the makers of smartphones that the smart money is on android.
00:29:42>> What are you demoing here?
00:29:44>> We're demoing -- we're doing mafia wars.
00:29:46>> He works the crowd with the enthusiasm of an evangelist.
00:29:50>> We're counting on folks like you to come up with these great ideas to move the web forward.
00:29:54>> So what do you guys have here?
00:29:55>> We have geodelic.
00:29:58>> Google needs private developers like these, but it's also developing android programs on its own, in-house.
00:30:05[ Camera shutter clicking ] hartmut neven leads a google team racing to launch an ambitious new technology.
00:30:12They're trying to tie the cameras in smartphones to the immense power of google's search engine.
00:30:18Its official title is " but at the time, they were " >> so imagine you're a tourist.
00:30:26You arrive at this place, and you would like to know more about it.
00:30:29All you will have to do is you take a shot of the sign, and you see we recognized this as the santa monica pier.
00:30:39Google visual search is a new technology that essentially allows you to trigger a search of an image.
00:30:45The idea is you see something that interests you, you whip out your camera phone, take a picture of the object of interest, and this will trigger a google search.
00:30:54>> Google's competitors would be ..
00:30:57If they knew about it.
00:30:58When we visited, the visual search product was still secret.
00:31:03But google agreed to pull back the curtain and let cnbc cameras watch the process.
00:31:08It wasn't always pretty.
00:31:10>> As usual, a page came up, but there was no link this time, and I didn't know what to do.
00:31:14>> This sounds like a bug in the barcode scanner.
00:31:16>> This definitely should be fixed.
00:31:18>> Deadlines loom.
00:31:19Colleagues in other google offices are scheduled to test it the very next day.
00:31:2324 Hours later, a group of google engineers in new york who had never seen google visual search finally give it a try.
00:31:32>> You are at a friend's house and you see this cool book.
00:31:35And you think, "i want to find out what the reviews say about " do you think google visual search can help you?
00:31:41>> Back in california, they anxiously watch by video link as first-time users test the product.
00:31:48Some reviews are not encouraging.
00:31:51>> Like, I think that google visual search would help, but it wouldn't be my first stop.
00:31:55>> No price? no product?
00:31:57Useless.
00:31:57>> So you're feeling less certain that this will get you what you want?
00:32:01>> If I had gone to my phone and done a search, I would have gotten better information.
00:32:05>> Okay.
00:32:06Molly? useful?
00:32:08>> No.
00:32:09>> Okay. mike?
00:32:09>> I'm gonna disagree with everybody.
00:32:11[ Laughter ] I think this is way more useful than I thought it was gonna be.
00:32:17It's not what I expected.
00:32:18>> They decide it's just not ready for prime time.
00:32:22>> Not yet.
00:32:23>> So team members are dispatched to fix any remaining problems.
00:32:27>> Come on.
00:32:28No, it didn't get the -- yeah.
00:32:31We're still building out our database, so we don't quite have all the objects in here that we would like to recognize.
00:32:36>> The last critical hurdle is an internal product review " >> yeah, so, I think that this is a good result, so I'm gonna rate it heavily.
00:32:44>> Shailesh nalawadi is a product manager.
00:32:47>> "Dogfooding" really comes from the phrase "to eat your own dog food," which at google means that every product that we get ready to release to our end users is tested extensively within google by all of the employees at google.
00:33:02>> Never mind the cute name.
00:33:04Dogfooding means the team's baby will soon be in the hands of 20,000 critics, gleefully trying to tear it apart.
00:33:12>> Googlers are very passionate about the products that we put out, and we get a ton of feedback, which we incorporate into the product before finally releasing it out to the hands of the end users.
00:33:22[ Indistinct conversations ] >> google is used to leading the field, but not in mobile phones.
00:33:28Visual search and apps like it are critical if google is going to challenge apple and claim more of those tiny screens in billions of hands around the globe.
00:33:38For now, google is playing catch-up.
00:33:45>> WHAT AdWords DOES IS IT Creates a level playing field for everyone from the smallest mom-and-pop business up to the largest fortune 500 company.
00:33:54>> How good of a program is GOOGLE AdWords FOR SMALL Businesses like yours?
00:33:59>> In my opinion, it would be indispensable at a time like this.
00:34:02>> AdWords IS WHAT MADE GOOGLE Google.
00:37:25[ Bell clanging ] [ train whistle blows ] >> in the small, sun-baked town of nogales, arizona, just a stone's throw from the -mexico border, we found an unlikely marriage of old-world ..
00:37:42And high-tech salesmanship.
00:37:48>> The cowboys that wear our boots like to buy the toughest boot we can possibly make, so we delight in making the toughest cowboy boot that we can.
00:37:57[ Chuckles ] >> cowboy boots don't get any tougher than this.
00:38:03And cowboy-boot makers don't get any better than paul bond.
00:38:07>> All right.
00:38:09>> At 93, you can still find him every day in his workshop, ..
00:38:15>> Okay, that'll give them a little design around the top.
00:38:19..And hand-fitting the wooden forms he makes for each customer's feet.
00:38:23>> We shape his toes down to it and the arch is just the right length.
00:38:29>> The result is some of the most exquisite, durable, and expensive cowboy boots available anywhere, from $500 and up, depending on the design and leather.
00:38:40What's the best skin?
00:38:42>> Oh, really one of the best is just a good, old heavyweight calf skin.
00:38:45There's a heavyweight calf skin right there.
00:38:49>> For decades, bond boot relied mostly on word of mouth, including some very famous mouths.
00:38:56But recently this old-school craftsman took a gigantic step forward and planted his hand-cut boot firmly in the 21st century.
00:39:06Bond boot began to advertise on google.
00:39:10>> You're handling it.
00:39:11>> [ Chuckles ] >> george bond is paul's son and business partner.
00:39:15Did you know much about google before approaching?
00:39:19>> Only as a search engine.
00:39:20I used it a lot.
00:39:21It actually was my favorite search engine.
00:39:25BUT NOTHING ABOUT AdWords, Nothing about the advertising.
00:39:28I had no idea how it all worked.
00:39:31>> Google's advertising program IS CALLED "AdWords." It's a simple name, but its effect has been seismic, and not just for small advertisers like paul bond boot.
00:39:42AdWords IS ONE OF THE MOST Revolutionary developments in the media world since television itself.
00:39:49Author john battelle.
00:39:50>> AdWords MADE THE COMPANY.
00:39:52The company would be an interesting side note, as there have been so many in search.
00:39:57Dozens if not scores or hundreds of really interesting search services have come and gone or still exist but no one knows about them.
00:40:06BUT AdWords IS WHAT MADE GOOGLE Google.
00:40:08>> SO AdWords IS THE MAGIC.
00:40:10>> Absolutely.
00:40:12>> AdWords MAY BE THE MOST Successful and profitable business program you've never heard of.
00:40:18It generates more than 95% of google's total profits, $4 billion in 2008.
00:40:25If you ever wondered how google MAKES ITS MONEY, AdWords IS IT.
00:40:29>> It is very pure.
00:40:32It is a pure profit machine.
00:40:33I have a thesis, which is that they have more profits in that company than the entire media business, you know, in the 10 years that the company has been profitable or so.
00:40:42It's just -- it's staggering.
00:40:44>> AdWords IS WHAT GENERATES The ads, or sponsored links you see on a google results page.
00:40:50If you google "custom" or ..
00:40:54There you are.
00:40:54>> Yeah.
00:40:55..The paul bond boot ad often shows up there.
00:40:58Those are called "impressions," and they don't cost bond boot anything.
00:41:03They only have to pay google when someone actually clicks on their link and goes to their website.
00:41:10" how well does it work?
00:41:14When bond boot launched their campaign, orders instantly spiked, more than 20%, and they've only gone up since.
00:41:23How good of a program is google AdWords FOR SMALL BUSINESSES Like yours?
00:41:28>> In my opinion, it would be indispensable at a time like this.
00:41:32You can hit the people who are actually looking for the product.
00:41:36And in a product such as this, that's a very relatively small number of people, but they do know what they're looking for if you just help them get there.
00:41:46>> Most advertisers want their ads to show up as high on the page as possible.
00:41:51Here's how they get there.
00:41:53Let's say paul bond boot wants its ad to appear when someone does a search for "ostrich " maybe bond boot is willing to pay $1 for every click on their link, so that's what they bid on those keywords.
00:42:07But there's more to it than price.
00:42:10Google's algorithm also gives a quality score to each advertiser's website.
00:42:16>> You can't buy your way to the top if your ad isn't relevant.
00:42:19>> David fischer is google's vice president for global online sales.
00:42:24>> An advertiser who chooses the right set of keywords and shows really relevant ads can actually appear right at the top and actually be paying less than some of the advertisers who appear below them because their ad is so relevant, our system actually rewards that.
00:42:38There he is.
00:42:39He shows up in the top slot.
00:42:40>> And that's what happens with paul bond boot.
00:42:43They may have a modest ad budget, but google often pushes them to the top because of the quality of their website.
00:42:50>> WHAT AdWords DOES IS IT Creates a level playing field for everyone from the smallest mom-and-pop business up to the largest fortune 500 company and lets them compete alongside each other.
00:43:02>> Advertisers can also adjust their campaigns down to the pennies they spend, the minutes they advertise, and the zip codes where they show.
00:43:11>> You actually are presented with a map and all kinds of ways of determining where you want to advertise.
00:43:17At the moment, I have it primarily set by country because we're trying to control a budget.
00:43:23>> This is very addictive, because it just enables you to watch all of the activities of your customer.
00:43:29>> You are exactly right.
00:43:30>> It's a constant score card.
00:43:32>> It becomes kind of a game that you're playing.
00:43:34>> LIKE MOST AdWords USERS, George bond manages the advertising himself.
00:43:39And it's obviously working.
00:43:42Maybe too well.
00:43:44Sometimes he literally has to shut it off.
00:43:47>> Google could overwhelm us quickly.
00:43:50>> How will google overwhelm?
00:43:52>> Given the indicated figures, it could double the number of orders coming in.
00:43:59There is far more out there available to us if we decide to extend the budget further.
00:44:05There's a lot more out there.
00:44:08>> Right now the bonds have a four-month waiting list for new custom boots.
00:44:12>> Your boots will be there in about three days, how about that?
00:44:16>> Ah, looks good.
00:44:17>> Paul bond couldn't have imagined google when he started making cowboy boots back in the EARLY '30s.
00:44:23But not even this tiny shop in an arizona border town is beyond the reach of the internet's most powerful presence.
00:44:37[ Siren wailing ] >> 3024, respond for unknown emergency.
00:44:42>> It helps us do our job faster by helping us retrieve information quicker.
00:44:46So if I want to see abandoned buildings, I click on an abandoned-building layer, and then it becomes enabled on my map.
00:48:28[ Alarm rings ] [ siren wailing ] >> high noon and the , fire department is responding to a possible explosion.
00:48:44On board, they've got radios, first-aid gear, and the latest firefighting tool -- google.
00:48:50That's right -- google.
00:48:52>> It helps us do our job faster by helping us retrieve information quicker, and it also gives us a reference point on a map.
00:49:00>> Deputy chief demetrios vlassopoulos isn't talking about google's search engine but a customized version of its mapping program, google earth.
00:49:10>> So if I want to see abandoned buildings, I click on an abandoned-building layer, and then it becomes enabled on my map.
00:49:16>> It also shows the location of every fire hydrant, fire truck, and ems unit in the city, all in real time.
00:49:23>> The hydrant layer is telling us not only where the hydrants are, but whether they're in service or out of service.
00:49:28If they're out of service, we can't use them, so we're not even gonna waste our time with it.
00:49:32>> Google earth is part of a software package the city of buys called "google applications," "apps," for short.
00:49:39Unlike most office software, apps isn't installed on individual computers but on google servers accessed through the internet.
00:49:48It's an idea called "cloud " tell me what the concept of cloud computing is.
00:49:53>> Cloud computing means you get your technology from the cloud, from somewhere else.
00:49:59Instead of having it installed on computers and software and manage it all yourself, you get it in the cloud.
00:50:04>> Dave girouard is president of google enterprise.
00:50:07His job is to sell customized google apps like gmail, search, and google earth to businesses, schools, and governments.
00:50:14>> In the old world, you pay a lot of money up front, and then you pay somebody else to install it, and then you pay somebody else to patch it when there are security problems, or manage it.
00:50:23And then you go through another whole set of problems when it's time to upgrade to the new version.
00:50:27In this world, all of that disappears.
00:50:29[ Siren wailing ] officials say google apps has saved taxpayers more than $3 million in its first year alone.
00:50:36With a growing list of customers like genentech and motorola, apps is turning a profit for google, but a relatively small one.
00:50:45What may be keeping it from growing even bigger is the fear among some companies of entrusting their data to google's servers.
00:50:53What if companies, institutions are hesitant to give sensitive information about intellectual property on the google cloud?
00:51:01>> There is an element of trust required that there's just no getting around.
00:51:05You know, companies have to trust somebody.
00:51:07They trust their accountants.
00:51:09They trust their lawyers.
00:51:10They trust the phone company to transmit their phone calls.
00:51:13And at some point, they will become more and more comfortable with companies holding their data in their servers.
00:51:19>> 10 Years ago, most of us had barely heard of google, much less considered entrusting it with our most valuable information.
00:51:26Today, it is growing in size and ambition, as this once-unknown start-up keeps moving into so many aspects of our lives.
00:51:36Do a search for the phrase "google's future," and you'll get more than a million results.
00:51:41But none of them can answer the company's most pressing questions.
00:51:45Could it become too big for its own good?
00:51:48How much more can it improve its search engine?
00:51:51Can it continue to protect our privacy and its future?
00:51:55One thing's for sure.
00:51:57This is google, and everyone will be watching.
00:52:01I'm maria bartiromo.
00:52:02Thanks for joining us.
00:53:00Compare a well equipped lexus es, to a well-equipped buick lacrosse.
00:53:06Get inside each. and see what you find.
00:53:12Ction iswhat you pursue, this just might change your course.
00:53:17Meet the new class of world class.
00:53:21The twenty-ten lacrosse, from buick.
00:53:27May the best car win.
00:53:31you've by artery, another heart attack could be lurking, waiting to strike.
00:53:36A heart attackcaused by a clot, one that could be fatal.
00:53:40But Plavix helps save lives.
00:53:41Plavix, taken with other heart medicines, goes beyond what other heart medicines do alone, to provide greater protection against heart attack or stroke and even death by helping to keep blood platelets from sticking togetherand forming clots.
00:53:53Ask your doctor about Plavix, protection that helpssave lives.
00:53:56[ Female Announcer ]People with stomach ulcers or other conditions that causebleeding should not use Plavix.
00:54:01Taking Plavix alone or with some other medicines, including aspirin, may increase bleeding risk, so tell your doctor when planning surgery.
00:54:07Certain genetic factors and some medicines, such as Prilosec, may affect how Plavix works.
00:54:11Tell your doctor all the medicines you take, including aspirin, especially if you've had a stroke.
00:54:16If fever, unexplained weakness or confusion develops, tell your doctor promptly.
00:54:20These may be signs of TTP, a rare but potentially life-threatening condition, reported sometimes less than 2 weeks after starting Plavix.
00:54:26Other rare but serious side effects may occur.
00:55:16some people will stick with their old way of getting vitaminsand minerals.
00:55:18Others will try incredible Total Raisin Bran.
00:55:20With 100% of the Daily Value of 11 essential vitamins and minerals, juicy raisins and crunchy whole grain flakes.
00:55:25Guess it's all about what kind of crunch you like.
00:55:28How are you getting 100%?

Tag cloud of show

Livedash is ad supported

mReplay Livedash is a registered trademark of mReplay Corporation. The information provided with mReplay Livedash is for informational purposes only. For more information, please see our terms of use. The network logos used on mReplay Livedash are registered trademarks of those respective companies, including Fox, NBC, CBS, PBS, ABC, FX, TNT, ESPN, ESPN2, TBS, USA, MTV, VH1, Spike, A&E, Bravo, AMC, TLC, Animal Planet, ABC Family, Cartoon Network, Disney, CNN, CNBC, Fox News, MSNBC, Comedy Central, Entertainment, TV Land and Oxygen. These networks, Fox, NBC, CBS, PBS, ABC, FX, TNT, ESPN, ESPN2, TBS, USA, MTV, VH1, Spike, A&E, Bravo, AMC, TLC, Animal Planet, ABC Family, Cartoon Network, Disney, CNN, CNBC, Fox News, MSNBC, Comedy Central, Entertainment, TV Land and Oxygen, are not affiliated with mReplay Livedash, or mReplay Corporation.