MIS 5105Dr. Garrett

The need for networking Key elements of

telecommunications and networking The telecommunications industry Online Advertising Spending/Growth Case: Google

Sharing of technology resources Sharing of data Distributed data processing and

client/server systems Enhanced communications Marketing outreach

Networking – the electronic linking of geographically dispersed devices

Telecommunications – communications (voice and data) at a distance

Analog network uses continuous voltage varying as a function of time

Example: voice over telephone lines

Digital network directly transmits two discrete states

Note: 0 for pulse off and 1 for pulse on

Analog and Digital Signals

Transmission Media Typical Speeds

Computer Telecommunications Networks Private branch exchange (PBX) Networks Local Area Networks (LANs) Backbone Networks Wide Area Networks (WANs) Internet Internet2

Types of Networks

Owned by a single organization Operate within area 2-3 miles in diameter Contain a number of intelligent devices,

usually microcomputers, that can process data … based on peer-to-peer relationship

No part of telephone system, have their own wiring

Types of NetworksLocal Area Networks

Wireless LANWireless LAN• Known as Wi-Fi (wireless fidelity)Known as Wi-Fi (wireless fidelity)• Growing in demand for corporate and home useGrowing in demand for corporate and home use• Use IEEE 802.11 standards with shared Use IEEE 802.11 standards with shared

Ethernet design Ethernet design • Requires use of wireless network interface card Requires use of wireless network interface card

((NICNIC))• Wireless Access Point (Wireless Access Point (WAPWAP) – radio transceiver ) – radio transceiver

that acts as a hubthat acts as a hub

In-between network that interconnects LANs in a single organization with each other and with organization’s WAN and the Internet

Types of NetworksBackbone Network

Backbone network terminology: Bridge – connects two LANs using same

protocol Router (gateway) – connects two or more LANs

that may use different protocols Switch – connects more than two LANs using

the same protocols

Types of NetworksBackbone Network

Communicate voice and data across greater distances

Usually owned by several organizations (including user organization and common carrier)

Employ point-to-point transmission Often rely on public telephone network

Types of NetworksWide Area Network (WAN)

Network of networks that use the TCP/IP protocol Contain gateways to computers that do not use

TCP/IP Provides four basic functions:

Electronic mail Remote login Discussion groups Sharing of data resources

Types of NetworksThe Internet

Digital subscriber line (DSL) – service offered by telephone companies using copper wire already installed in homes … moving data over wires without disturbing voice traffic

Cable modem – connection obtained from cable TV company using existing home coaxial cable

Satellite – most expensive, but may be only option for customers in rural areas

DSL, Cable Modem, and SatelliteInternet Access Services

Intranets

Intranet – a network operating within an organization that uses the TCP/IP protocol

Network Protocols

Protocol – agreed-upon set of rules governing communication among layers or levels of a network

International Organization for Standardization (ISO) network protocol – Open Systems Interconnection Reference Model (OSI)

Thought to become the only standard for networking Gained momentum until Internet explosion

Transmission Control Protocol/Internet Protocol (TCP/IP)

Has become the de facto standard for networking today

Network Protocols

Online Operations Connectivity Electronic Data Interchange (EDI) and

Electronic Commerce Marketing

Carriers Own or lease the physical plant – cabling,

satellites, cellular towers, etc. Sell service of transmitting communication from

one location to another

Equipment vendors Manufacture and sell LAN software and hardware Includes routers, hubs, wireless access points,

digital switches, multiplexers, cellular telephones, modems

Service providers Operate networks and deliver services through the

network Provide access to or services via the Internet (such

as AOL, Microsoft Network, Yahoo!, and many ISPs

Ad Spending: Ad Spending: Comparisons & GrowthComparisons & Growth

$440M$440M

$1,466M$1,466M

$3,189M$3,189M

$6,139M$6,139M

$0.45$0.45 $0.41$0.41

$1.46$1.46

$5.02$5.02

$0$0

$1,000$1,000

$2,000$2,000

$3,000$3,000

$4,000$4,000

$5,000$5,000

$6,000$6,000

$7,000$7,000

20022002 20032003 20042004 20052005$0$0

$1$1

$2$2

$3$3

$4$4

$5$5

$6$6

RevenueRevenue

EPS (diluted)EPS (diluted)

RevenueRevenue ($ Millions)($ Millions)

EPSEPS(diluted)(diluted)

AdWordsAdWords AdSenseAdSense

Google Enterprise ProductsGoogle Enterprise ProductsLicensingLicensing

• Coverage for advertisers Coverage for advertisers beyond search targetingbeyond search targeting– AdSense network covers nearly AdSense network covers nearly

every topic imaginableevery topic imaginable

– Matches highly targeted Matches highly targeted advertising with niche contentadvertising with niche content

• Broad reach for branding Broad reach for branding advertisersadvertisers– Site Targeting allows advertisers Site Targeting allows advertisers

to reach their target audienceto reach their target audience

– Aggregates the long tailAggregates the long tail

The Power of the “Tail”The Power of the “Tail” 3.9 Million Daily Page Views 3.9 Million Daily Page Views on on Hip HopHip Hop Related Sites Related Sites

$54.33 mesothelioma lawyers$47.79 what is mesothelioma$47.72 peritoneal mesothelioma$47.25 consolidate loans$47.16 refinancing mortgage$45.55 tax attorney$41.22 mesothelioma$38.86 car accident lawyer$38.68 ameriquest mortgage$38.03 mortgage refinance

Source: San Jose Mercury News, March 2006

Source: TNS-MI; 2005 and 2003 US online display advertising, excludes companies with online spend less than $400K in 2003Source: TNS-MI; 2005 and 2003 US online display advertising, excludes companies with online spend less than $400K in 2003

3939

Targeted Targeted AdvertisingAdvertising

Targeted Targeted AdvertisingAdvertising

10%10%

20%20%

Core 70%Core 70%SearchSearch

AdsAds

GoogleGoogleVideoVideo

GoogleGoogleTalkTalk

GmailGmail

LocalLocalSearchSearch

DesktopDesktopSearchSearch

AdSenseAdSense

BookBookSearchSearch

EnterpriseEnterprise

MobileMobileSearchSearch

Google Google EarthEarth

AdSense AdSense OfflineOffline

Google Google MoviesMovies

Google Google CodeCode

Google Google ReaderReader

Google Google SuggestSuggest

Google Google PackPack

OrkutOrkut WiFiWiFi

= = Engineering and PM officesEngineering and PM offices

• Mountain View, CAMountain View, CA• Kirkland, WAKirkland, WA• Phoenix, AZPhoenix, AZ• Pittsburgh, PAPittsburgh, PA• New York, NYNew York, NY• Santa Monica, CASanta Monica, CA

• Bangalore, IndiaBangalore, India• Beijing, ChinaBeijing, China• Belo Horizonte, BrazilBelo Horizonte, Brazil• Hyderabad, IndiaHyderabad, India• London, U.K.London, U.K.• Munich, GermanyMunich, Germany• Tokyo, JapanTokyo, Japan• Trondheim, NorwayTrondheim, Norway• Waterloo, CanadaWaterloo, Canada• Zurich, SwitzerlandZurich, Switzerland

• stored in a text file on your hard drivestored in a text file on your hard drive

• usageusage

– track users (unique ID)track users (unique ID)

– save passwords / prefs.save passwords / prefs.

– temporary storage (shopping basket)temporary storage (shopping basket)

• each cookie can only be accessed by the each cookie can only be accessed by the domain that placed it (ads have own domain)domain that placed it (ads have own domain)

• may be disabled (prefs) may be disabled (prefs)

• a cookie a cookie single user single user

Targeting OptionsTargeting Options• site categorizationsite categorization• visitor frequencyvisitor frequency• geographygeography• domain namedomain name• service providerservice provider• SIC codesSIC codes• company size (emp, $)company size (emp, $)• browser typebrowser type• operating systemoperating system• click streamclick stream