Apple's iOS drives 75% of Google's mobile advertising revenue

Posted:
in iPhone edited June 2015
Despite the ever-increasing competition between Google and Apple, iOS remains an exceptionally important advertising platform for the search giant, with one Wall Street estimate attributing as much as three-quarters of Google's mobile ad revenue to users of Apple's devices.




Of the $11.8 billion in mobile search revenue Google booked in 2014, 75 percent --?nearly $9 billion --?came from iOS, according to a recent Goldman Sachs analysis cited by the New York Times. Half of that total is chalked up to a deal with Apple that makes Google the default search engine for mobile Safari.

That arrangement is thought to cost Google between $1 billion and $2 billion each year, and many believe that it will end sooner than later. Apple is rumored to be considering a switch to Yahoo or Bing, and might also enter the market with its own solution.

Apple is known to be working on a large-scale web search program, led by the team acquired with social analytics firm Topsy in 2013.

These developments put Google in a precarious position when it comes to mobile search, and losing iOS is a potentially disastrous scenario. Google has already seen mobile search volume eclipse desktop search volume in 10 markets --?including the U.S. and Japan --?and many new Android-based manufacturers have eschewed Google's own services in favor of other local options.

This is especially true in mainland China, where most Google offerings are blocked by government firewalls. Without Apple, Google risks being ironically cut out of the market by its own software.
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Comments

  • Reply 1 of 80
    MacProMacPro Posts: 19,383member
    As I have said many times. Apple should to find a way to remove as much of that as possible. No reason to help fund your potential nemesis. The best way would be ?Search as the default IMHO.
  • Reply 2 of 80
    slurpyslurpy Posts: 5,317member
    Holy shit. Just goes to show how important it is for Apple to disconnect from Google's services, and how much power Apple has to screw Google over.

    So basically, almost Google's entire business relies on ad revenue (which is decreasing) and almost all of it is generated from iOS devices, on which Apple can change the defaults on a whim. Great position Google is in. And people always concern troll about the iPhone being "too big a part of Apple's business".
  • Reply 3 of 80
    freerangefreerange Posts: 1,594member
    Sweet revenge!
  • Reply 4 of 80
    gatorguygatorguy Posts: 23,176member
    slurpy wrote: »
    Holy shit. Just goes to show how important it is for Apple to disconnect from Google's services, and how much power Apple has to screw Google over.

    So basically, almost Google's entire business relies on as revenue (which is decreasing) and almost all of it is generated from iOS devices, on which Apple can change the defaults on a whim. Great position Google is in. And people always concern troll about the iPhone being "too big a part of Apple's business".
    "Ever increasing competition".... :rolleyes:

    What I don't get is why Google would want to harm Apple or their products in any way if they make so much money from services on their platform?? As it makes no sense why they would (unless someone here can explain it logically) it follows that they don't want to, nor have they IMHO.

    I doubt Apple has lost a single dime of revenue because of Google. Heck Apple sells every single smartphone, tablet and smartwatch they can possibly build and at a premium. If Android didn't exist some other company and/or OS would have to fill the vacuum since Apple can't meet all the consumer and enterprise demand by themselves. Google's interest from the beginning was making sure they had access to all platforms. As DED said more than once, Android was meant as a buttress against Microsoft and not Apple. In reality Google was part of the reason for the iPhone's immediate success. Without Google maps and Google search it would not have been nearly as compelling a handset as it was when introduced to the world, and Apple knew that. I'm sure that was one of the reasons Jobs wanted Google represented on Apple's BOD and an Apple BOD member on Google's board. They helped each other to be successful.

    The problems between the two can be chalked up to a personal issue between Steve Jobs and Schmidt IMO and not any true market or financial harm that Google caused Apple. Just my opinion.
  • Reply 5 of 80
    ceek74ceek74 Posts: 324member

    Apple...PULL...THE...PLUG!!!  F-'em.

  • Reply 6 of 80
    gwmacgwmac Posts: 1,799member
    When people see or click on ads they have no idea if they are Google adsense, Bing, or any other network. If Apple chose to switch to someone else it wouldn't effect the end user in the slightest. Of course Apple should only switch if it makes more sense to do so for them financially. Stinging Google with lower profits would be icing on the cake though.
  • Reply 7 of 80
    pmzpmz Posts: 3,433member

    These are kinds of stats that tell the true story of iOS vs. Android. If Android were anywhere near as popular as Google lies about it being, those numbers would be reversed.

     

    The truth is, Android is POS imitation installed on POS imitation devices, that are never used by real people. I have a few Android devices for testing my Apps on, and I think I use them more in this context than real people do as a day-to-day device.

     

    Android devices spend the majority of their life on shelves and in drawers.

  • Reply 8 of 80
    pmzpmz Posts: 3,433member
    Quote:

    Originally Posted by gwmac View Post



    When people see or click on ads they have no idea if they are Google adsense, Bing, or any other network. If Apple chose to switch to someone else it wouldn't effect the end user in the slightest. Of course Apple should only switch if it makes more sense to do so for them financially. Stinging Google with lower profits would be icing on the cake though.



    Seriously, no one cares about this anymore. Least of all the average user. If Apple created a hybrid of Bing and Yahoo Search, stripped down any branding and made it the default on iOS and OS X, no one would be the wiser. 

  • Reply 9 of 80
    jpellinojpellino Posts: 652member
    Apple has no reason to dump Google as a search engine.

    Google has no reason to dump Apple as a supported platform.

    Fans on both sides need to get over it.
  • Reply 10 of 80
    Quote:

    Originally Posted by pmz View Post

     

    These are kinds of stats that tell the true story of iOS vs. Android. If Android were anywhere near as popular as Google lies about it being, those numbers would be reversed.

     

    The truth is, Android is POS imitation installed on POS imitation devices, that are never used by real people. I have a few Android devices for testing my Apps on, and I think I use them more in this context than real people do as a day-to-day device.

     

    Android devices spend the majority of their life on shelves and in drawers.


    Google isn't lying about their numbers. Some Android users use their devices differently than what iOS users use them for. Regardless they aren't lying. 

  • Reply 11 of 80

    I love using Duck Duck Go.  Usually the first couple of results are all I need, because I'm usually looking for an official website or Wikipedia.  (Siri takes care of a lot of the rest of my queries.)

     

    It's clean and fast and has a picture of a duck instead of the ugly google logo.

     

    I also actually like buying apps so I don't have to deal with advertisements.

     

    I do wish Safari had a pop up blocker.

  • Reply 12 of 80
    Quote:

    Originally Posted by MessagePad2100 View Post

     

    I love using Duck Duck Go.  Usually the first couple of results are all I need, because I'm usually looking for an official website or Wikipedia.  (Siri takes care of a lot of the rest of my queries.)

     

    It's clean and fast and has a picture of a duck instead of the ugly google logo.

     

    I also actually like buying apps so I don't have to deal with advertisements.

     

    I do wish Safari had a pop up blocker.


    I've tried using Duck Duck Go but it's god awful at local search results. Google gets me much better results for what I'm looking for. 

     

    Duck Duck Go is good but their logo is an ugly duck. I'd rather see Google's logo than that. Not that I choose a product based on a logo.

  • Reply 13 of 80
    Quote:

    Originally Posted by pmz View Post

     



    Seriously, no one cares about this anymore. Least of all the average user. If Apple created a hybrid of Bing and Yahoo Search, stripped down any branding and made it the default on iOS and OS X, no one would be the wiser. 




    Interesting thought PMZ.

     

    If ? paid Bing, Yahoo! and/or Duck Duck Go to power an ? branded Search, it would be the fastest and most qualitative way for ? to enter the Search arena.

     

    I actually would like to see Duck Duck Go get bought by ?.

  • Reply 14 of 80
    gwmacgwmac Posts: 1,799member
    Quote:

    Originally Posted by pmz View Post

     



    Seriously, no one cares about this anymore. Least of all the average user. If Apple created a hybrid of Bing and Yahoo Search, stripped down any branding and made it the default on iOS and OS X, no one would be the wiser. 




    Yep, I agree 100%. No one would be the wiser with a change. Even if Apple made less money by switching to Bing ads they might do it since it is pittance to them but would really hurt Google. It would also make a lot of websites consider changing to Bing and that is the really big deal behind all of this. If Microsoft can get more websites using their ads that would really be a double whammy to Google.

  • Reply 15 of 80
    anantksundaramanantksundaram Posts: 20,228member

    Whatever Apple decides to do in this sphere, I hope its foray into search will be less cumbersome and hesitant than its moves into maps (much better, but still leaves a lot to be desired), email (I barely use my Apple Mail account anymore), social (we all know about that one), and web browsing (much improved now). They're all decent-to-good, but none of them hits the ball out of the park for me.

     

    Also, I hope that Apple does not dump Google for Yahoo (cr4p), Bing (I don't know anyone that uses it except Microsoft employees), or DuckDuckGo (limited). That would be a huge mistake, in my view.

     

    I really do not believe that Apple has to do everything for everybody. It does great hardware and software, and has an incredible ecosystem to go with that. That is more than sufficient to build on. Much as I am not a fan of Google, I do think that their search dominates the globe for a reason. Apple has to play well with the dominant players in their respective areas of specialization whether we want it or like it or not.

  • Reply 16 of 80
    Quote:

    Originally Posted by MathieuLLF View Post

     

    I've tried using Duck Duck Go but it's god awful at local search results. Google gets me much better results for what I'm looking for. 

     

    Duck Duck Go is good but their logo is an ugly duck. I'd rather see Google's logo than that. Not that I choose a product based on a logo.




    Funny.  I don't have issues finding local results.  

     

     

    Maybe you troll too hard?  Also you have bad taste.

  • Reply 17 of 80
    retrogustoretrogusto Posts: 881member
    pmz wrote: »
    Android devices spend the majority of their life on shelves and in drawers.

    ...plugged in.

    I helped a friend move to a new apartment a couple of weeks ago, and around lunchtime a guy showed up (an hour late) to install the cable box, and one of the first things he said was, "uh, do you have an Android charger?"
  • Reply 18 of 80
    y2any2an Posts: 91member
  • Reply 19 of 80
    gatorguygatorguy Posts: 23,176member
    y2an wrote: »
    There's also a "PageRank2" patent issued in 2006 and not expiring for several more years. Just sayin'...
    http://www.seobythesea.com/2006/06/pagerank-patent-updated/

    In addition Google is probably no longer relying on PageRank, having moved on since then.
    http://www.seobythesea.com/2014/12/replacement-pagerank/
  • Reply 20 of 80
    Quote:

    Originally Posted by MessagePad2100 View Post

     



    Funny.  I don't have issues finding local results.  

     

     

    Maybe you troll too hard?  Also you have bad taste.


    You're probably in the US. Where I am local results on Duck Duck Go are extremely hit and miss.

     

    So I'm trolling because we prefer different search engines? Wow.

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