Should Google Get Aggressive About Monetizing Android? 168
Nerval's Lobster writes "Google's core search-advertising business is slowing down (despite an uptick in revenue and earnings for the most recent quarter) and a new report suggests that advertising ROI is much higher on iOS than Android. In light of that, it's worth asking whether Google, having dominated much of the mobile-device market with Android, will ever get around to more aggressively monetizing its mobile operating system, and what that could mean to the manufacturers that have been loading the software for free onto their hardware. If Google started charging licensing fees to manufacturers, and attempted to clamp down so that Google Play served as the only hub for Android apps (something that would definitely put it on a collision course with Amazon, which boasts its own Android app store), would it be shooting itself in the foot? Or would the rest of the ecosystem respond in a muted way, considering the sheer size of Google's power and presence?"
It's too late for that (Score:4, Interesting)
Not if they know history (Score:5, Interesting)
History is ripe with companies that built a product that does something different, and in ways better, than the competition. And once their product is successful, they try to emulate something that somebody else does, and their product share slowly declines as their users realize there is no longer anything special about the product.
Look at Firefox. It was a faster, lighter, less annoying and extensible browser. Over time, it slowly got bulkier, slower, and in some ways buggier. They annoy users by panicing any time a certificate is signed by an authority not on the list. When Google released Chrome, Firefox decided they wanted to have a Chrome-like super fast release cycle, which hurt extensions. Users are slowly leaving Firefox for other browsers, especially Chrome, as Firefox becomes less and less special.
If Google locks down the OS and prevents users from installing their own applications, then Android will no longer be special. People will still use it, since it's still a smart phone and devices will be cheaper than Apple. But as soon as a competitor comes along that offers what Google used to offer, users will quickly leave, and within several years Android will be a memory.
Re:Are we asking ... (Score:5, Interesting)
Yes. The poster is asking if Google should do like so many previous evil companies and stop innovating, and instead focus on putting the pinch to their clients. Oracle falls squarely in this category. I'm hoping Google will instead decide to continue innovating. They've been pretty damned good at it.
Re:They do (Score:5, Interesting)
No. That is the difference with google; other companies track you and sell your information. Google tracks you, and targets and sells the ads themselves, and don't sell your info. You're the product, but your information isn't being sold. They leverage their position to sell your behavior (clicks) instead.
Is this a article Joke (Score:5, Interesting)
Google stock hits a record on its quarterly results...Jumping 8% in after hour trading. Its ad revenue despite what the article implies grew 17% year-over-year. That is up from its 15% growth in the second quarter.
But the reality is Googles growth is in "Other" revenue; which grew 85% thanks to sale of Apps...sound like they are monetizing Android even without advertising.
Graph showing revenue by revenue source http://b-i.forbesimg.com/roberthof/files/2013/10/Screen-shot-2013-10-17-at-1.45.11-PM.png [forbesimg.com]
Of course ROI for iOS ads is higher! (Score:5, Interesting)
Devices running iOS sell at a premium, to people who don't mind paying more for goods they consider superior. Of course people with extra money will be able to buy more advertised products! People who are more cost-conscious will tend to gravitate to Android, and will also likely be more wary of advertising.