Google sharing ad revenue with carriers who use Android?

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.

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14 Comments

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Its cool that Google is making this phone available for all carriers. Kinda sux when a cool/good phone is only release for one carrier...and normally its not mine!

There's a lot of "potentially" in the article, but I remember reading an article not too long ago about carriers being angry at google for not sharing revenue that they feel that they are owed for search traffic and google responded that they won't share any.

tooshpz said,
hmmm... I smell anti-trust investigations...
Such haters... There's nothing illegal with sharing revenue. Google is one of the few responsible corporations out there. It's refreshing to see a company like that be successful.

Now go back to your closed-source world-hating crApple phone.

Nexus One is available on all carriers? I was under the impression you had to buy it outright and unlocked.

Sacha said,
Nexus One is available on all carriers? I was under the impression you had to buy it outright and unlocked.
Nope. There are carrier-subsidized versions available. And if it were only available as an unlocked GSM phone, you couldn't exactly use it on Sprint or Verizon.

Interesting to see that they are going into a market where they will compete with Apple's iPhone but basically taking the opposite approach - instead of charging carriers for each device they are sharing revenue with them.

It's one thing to have Google offering up advertising (oops, I mean, "enhancements") in a search page but I have a feeling "do no evil" will gradually introduce more ads in other aspects of their device. It begs the question: How far will they push advertising and still be able to retain their customers?

is a nice incentive though most android cellphone are out of the marketplace.
-non certified cellphones.
-rooted cellphone.
and
-unlocked/free cellphone.

Magallanes said,
is a nice incentive though most android cellphone are out of the marketplace.
-non certified cellphones.
-rooted cellphone.
and
-unlocked/free cellphone.


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