Isn't it interesting how Google managed to get the Nexus One on all cell carriers in the US? Were it any other company, such a feat could have taken years. Google has accomplished it at an alarmingly fast pace. So the question has been posed--how?
According to an exclusive report from PaidContent.org, it is believed that Google does more than just share their open source Android operating system with carriers and handset manufacturers--they give them cash incentive. The one thing that makes Google who they are is advertising. When it comes to this area of Internet money making, Google is the indisputable king. The amount of money they generate from the advertising business is astounding. PaidContent believes that in order to get companies to board the Android wagon, Google has revenue sharing deals in place.
Should a carrier, for example, have an Android device which uses Google's apps and search, mechanisms like click through advertising, could, potentially, yield the carrier a nice chunk of extra change. With cell carriers launching completely new 4G infrastructures, additional revenue is more important than ever.
Google's recent offer to purchase AdMob for $750 million shows just how serious the company is about expanding advertising into the mobile sector. Knowing this, revenue sharing deals don't seem too farfetched. The deals would be a win-win for Google, carriers, and phone manufacturers. Everyone stands to make money from it. With over 60,000 Android devices shipping each day, the mobile advertising market continues to grow, and is still largely untapped. Neither Google, handset maker, or carrier was willing to comment on the matter.