Does Google split ad revenue with its Android partners?
This article contains unofficial information.
More than one "well-informed" tipster has told mocoNews that part of the reason for the success of Android has to do with Google's sharing of advertising revenue with carriers that promote Android models. Some manufacturers are also getting some extra fundage from the Mountain View based company. The sources say that the revenue splitting occurs only on models that include Google applications like Gmail, Search and Maps since that is not a requirement to use the open source Operating System. Claiming that deals with partners are confidential, Google has refused to comment. The ad revenue reportedly being shared comes from ads placed on Google applications and at this point, really does not add up to that much money. As you probably can tell yourself, the majority of ads show up in Search rather than on Maps or Gmail.
If true, the carriers can generally use the small amount of money that comes to them from Google. It might even be enough money to get a carrier to push Android a little harder than the competition, although frankly, the OS doesn't really seem to need that little extra push to get going. And other handset makers who want to play a similar game might have trouble without the cash flow from advertising that Google enjoys. And while the latter company does share app profits with carriers, kicking back ad revenue to them raises the stakes dramatically. Whether or not Google does split advertising cash flow to carriers and some manufacturers, it doesn't take away the froth that has been building up with the strong line-up of Android models that are coming by the end of this summer, including the HTC EVO 4G.
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1. SPcamert (Posts: 56; Member since: 06 Feb 2010)
So Apple makes you pay to have their phone on your network and Google pays you just for having GMail, Google Maps, and Google Search on phones...Personally that sounds like a much better way to get the OS to spread. And I'd complain if they were paying companies to put terrible applications on the phones, but Google Maps and GMail and awesome. This seems like a win-win-win for Google the Wireless companies and the customer. :)