Alphabet Inc., through its subsidiaries, provides online advertising services. The company is a collection of businesses, including Google; and businesses that it combines as Other Bets, which include Verily, Calico, X, Nest, GV, Google Capital, and Access/Google Fiber. The company primarily delivers online advertising that consumers find relevant and that advertisers find cost-effective. Google's core products include Search, Android, Maps, Chrome, YouTube, Google Play and Gmail. The company’s advertising solutions help companies grow their businesses. It offers a range of products across screens and devices. The company primarily delivers both performance advertising and brand advertising. Performance Advertising Performance advertising creates and delivers relevant ads that users would click, leading to direct engagement with advertisers. Most of its performance advertisers pay the company when a user engages in their ads. Performance advertising lets its advertisers connect with users while driving measurable results. For performance advertisers, AdWords, the company’s primary auction-based advertising program, helps create simple text-based ads that appear on Google websites and the websites of Google Network Members, who use its advertising programs to deliver relevant ads alongside their search results and content. In addition, its partners that comprise the Google Network use the company’s AdSense program to deliver relevant ads that generate revenues and enhance the user experience. These programs let both small and large businesses connect with users looking for a specific item, say a pair of shoes or a plane ticket back home. The company also invests in its advertising programs, including Estimated Total Conversions, which help advertisers measure the effectiveness of their campaigns in a multi-screen world. Brand Advertising Brand advertising helps improve users' awareness of and affinity with advertisers' products and services, through videos, text, images, and other interactive ads that run across various devices. The company helps brand advertisers deliver digital videos and other types of ads to specific audiences for their brand-building marketing campaigns and in turn, generate revenue by distributing their ads, such as the TrueView ads displayed on the company’s YouTube videos. The company has built an ad technology platform for brand advertisers, agencies, and publishers to power their digital marketing businesses. Dispositions In October 2014, the company sold the Motorola Mobile business to Lenovo Group Limited. Research and Development For the year ended December 31, 2015, the company’s research and development expenses included $12.3 billion. Seasonality The company’s business is affected by both seasonal fluctuations in Internet usage and traditional retail seasonality. Internet usage slows during the summer months and commercial queries increase in the fourth quarter of each year (year ended December 31, 2015). Significant Events In May 2016, Progress Software Corporation has announced that it is working with Rangle.io and Google to help Kiva develop better mobile applications for connecting lenders and borrowers around the world. The partnership kicks off with a concept app that enables people in the U.S. to find small businesses in their local area fundraising on Kiva. In June 2016, Cintas announced that it has entered into a collaboration with the Alphabet's Google unit to explore advancing Project Jacquard into the enterprise space. Jacquard is a smart garment technology developed by Google's ATAP team, which enables conductive fibers to be woven into textiles connecting apparel in a wireless manner to devices. In August 2016, GlaxoSmithKline and Alphabet announced on that they are setting up a joint venture to develop bioelectronic medicines that use electrical signals to treat diseases or enhance the effectiveness of drugs. GlaxoSmithKline and Alphabet's Verily Life Sciences agreed to set up Galvani Bioelectronics. Glaxo would hold 55% and Verily would own 45% in the newly formed venture. Competition The company competes with Yahoo, Microsoft’s Bing, Yandex, Baidu, Naver, WebCrawler, MyWebSearch, Kayak (travel queries), LinkedIn (job queries), WebMD (health queries), Amazon, eBay (e-commerce), Facebook, Twitter, Criteo, and AppNexus. History Alphabet Inc. was founded in 1998. The company was incorporated in California in 1998 and re-incorporated in the state of Delaware in 2003.
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