Google Sharing Android Ad-Revenue With Carriers & Device Makers

Though nothing has been officially announced, the rumor mill suggests an ad-revenue share model between Google, carriers and device makers attributes to the growing popularity of the Android OS- likely accounting for the bevy of new devices hitting the market. Google is likely sharing ad-revenue derived from built-in applications running on Android devices, and is …   Read More

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Google Sharing Android Ad-Revenue With Carriers and Device MakersThough nothing has been officially announced, the rumor mill suggests an ad-revenue share model between Google, carriers and device makers attributes to the growing popularity of the Android OS- likely accounting for the bevy of new devices hitting the market.

Google is likely sharing ad-revenue derived from built-in applications running on Android devices, and is using it as incentive for device makers to use the OS, and for carriers to support Android-based devices.  Dangling the possibility of residual revenue from Google makes Android a very desirable commodity, much more so than any other OS.

In the past 18 months alone, the number of Android phones shipped has soared to 60,000 a day, with numerous devices sporting Android being announced at Mobile World Congress in Barcelona, and at this week’s CTIA, indicating carriers and device makers are responding well to Google’s lucrative offer- if it’s indeed true.

According to multiple sources familiar with the partnerships, the revenue-sharing agreements only occur when the handsets come with Google applications like search, maps and Gmail- since these apps aren’t a requirement of Android.  This gives device makers incentive to include Google’s apps, while creating a win-win situation for all parties involved.

It’s a pretty smart move on Google’s part, and a move that has been rumored to exist long before Android was even introduced.  Google’s long standing upper hand has always been its ad-revenue sharing model, which was made famous with AdSense.  No other mobile OS has a company behind it with such massive ad-revenue rolling in every month, that’s available to share with carriers and device makers as incentive for using it.  This gives Google the upper hand it knows it needs to advance Android to the point the company has always envisioned, and it’s working.

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5 comments

  1. Rahul Aggarwal

    The Android OS is creeping up in mobile market share, but it appears that it's a money maker. However, it is a right step forwards for the androids to make way to lead the iphones.

  2. Tom

    As in the past, carrier distribution and online promotion have played a crucial role in determining smartphone market share.

  3. Andrude

    Actually, the Android Market is available on all Android smartphones/tablets/netbooks/devices. Just some manufacturers choose to substitute other applications in place of the Google core applications (which was designed to be an option from Android’s beginning).

  4. Aaron

    What is the general take on our free “My Coupons” app on Google’s android market? It’s ad-free in terms of inserting external code ie Adsense/Admob, but offers companies at large to run campaigns either targeted via GPS location or by way of branding on the homescreen as content. We’ve got many millions of views monthly, and many thousand new users come aboard daily.
    Looking for marketing coordinator or opportunities… if interested inquire at link.

  5. Thomas

    My understanding is that to get app market on the device they phone must also carry the Google Applications isn’t this also an incentive?

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