Smartphone Apps And Mobile Search: Some Of Google's Biggest Revenue Bringers
The search giant Google relies a lot on mobile advertising revenue, but it seems that according to a recent research this has gone down, making it hard for it to find new solutions on how it can get back on track. At the same time, one of the platforms that Google is still earning a large part of its profits is Google Store which is undoubtedly doing well.
Data provider eMarketer revealed that Google is not doing well in the realm of online mobile search ads or the ads that most of us see displayed when performing a search using our mobile phone or tablet.
The cut in revenue, as many believe, is due to the fact that Apple has launched its very own search engine called Spotlight Search which, a long time before it was launched, Apple claimed that it was designed in order to offer an alternative to Google’s search engine and reduce people’s reliance on it.
Based on the numbers provided by eMarketer, before Spotlight Search was announced for release, Google’s revenue from mobile ads was 82.8% and in just a short period of time it managed to go down to a low 65.7%.
This is a massive 17.1% drop which Google seems to be very worried about. For a lot of people, this news comes as no surprise, since Apple, while it may have failed in the past with some of its ambitious project such as Apple Maps, has finally managed to make a deep cut in the giant’s market share specifically on search ads revenue.
There are though some inaccuracies in the report eMarketer released, with some information claiming that Google is losing popularity on the mobile platform, and that is definitely something anyone could tell it’s untrue. Let’s take a closer look below and see exactly how Google still manages to be king in the mobile ads market and how unlikely it is for anyone to take its throne anytime soon.
Google Controls Android
If you know a bit about Android, then you’re already aware that it’s the largest mobile operating system in the world, with billion of users worldwide. According to UniqueMobiles, Android owns more than 50% of the total market share worldwide.
Another thing that boosts Android’s popularity is the fact that Google offers it to manufacturers free of charges and they in turn implement it in their latest smartphones and tablets, driving its popularity even more. Just to name a few of the largest corporations using Android in their mobile gadgets, they include HTC and especially Samsung. So how is Google actually making money from its free operating system?
For one, Google has decided to ensure that Android successfully integrates Google search everywhere. This means that if you want to search something online, your search can be made easier by Google Now, which also includes Google Voice. On top of that, Google Now is deeply integrated within Android and offers impressive services such as sports scores, traffic info, flight information and other important data.
In fact, just by using Google Now, the search giant can generate a large revenue by having ads displayed with each search you perform.
And if it wants, Google may also place ads anytime they want when using Google Now, boosting their revenue even more. Just imagine for a few seconds what effect would sponsored “cards” have if they are to run on Google Now and you’ll understand how much money Google can actually make.
Google Sells TV Shows
The Google Play store successfully sells thousands of movies and TV shows that millions of people around the world are buying every second. While Google decided that it would be a good idea not to share their profits from Google Play anymore, this information won’t be available to the public anymore starting today.
However, if you take a look at the apps revenue that’s reported by the developers and Android, you can quickly realize that they’re easily making billions of dollars from it every year.
And let’s not forget about the fact that Google has tons of mobile services on offer that you need to pay for with some of them including DropBox, GoogleDrive and of course, YouTube. In fact, Google makes a lot of money from YouTube alone, no matter if you’re using the YouTube application or the mobile or internet browser version that displays mid video ads overlay, pre-video ads and so forth.
Lastly, Google Wallet and Google Shopping are two more examples of how the search giant is rounding up its revenues every year. However, there are many more services implemented within Android’s walls that belong to Google and they too make a lot of money for it every year.
People Rely On Apps More Than Ever
If there’s one thing that eMarketer’s reports tells us, that is the fact that a lot of people have begun using apps in order to access their desired content. As a result, instead of using Google search to find a video of your favorite singer, you’ll use the YouTube app on your phone, since it allows you to instantly connect to YouTube and start watching videos.
And if you want to watch a movie, Google Play is just a tap away. Not many will actually bother using Google mobile search, since in many cases it takes longer to find and buy a movie this way.
Not too long ago, mobile advertising was a niche advertising sector and no one would’ve thought that it can reach such massive proportions and become so vital for literally any business in the world that wants to survive in the fast-changing and evolving global market.
These days, mobile advertising has become the dominant digital advertising platform and its transformation has been greatly influenced by the likes of Twitter and Facebook. While there are a lot of opportunities in this new context, there are also many challenges that need to be overcome and finding an effective solution to doing so is the key to boosting sales and staying relevant on the market.
Photo credit: jody o'dea / flickr
About Chris Pentago
Chris is father, husband and all-round computer geek who had privilege to watch both industry and technology rising from their bare beginnings and powering life as we know it today.