Android App Ad Revenues Not Shared With Carriers

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Android App Ad Revenues Not Shared With Carriers

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After a report suggested recently that Android applications' ad revenues were being shared with carrier and handset partners, Google quickly denied these claims.  Google says that it only shares revenues that are collected from search advertising.  The report suggested that revenue sharing with phone makers and carriers was the reason behind the increasing number of Android phones being shipped.  AdMob's latest mobile OS market share report shows that Android is indeed on the rise.

Google said that Android and non-Android devices that use Google as the default search engine will share search revenues, but not mobile application ad revenues.  According to Silicon Insider, sharing app ad revenues would hurt Google more than it would help.  However, one could imagine that such deals might be able to squeeze out other competitors besides Apple, who only has one handset.

Apps like Gmail, YouTube, and others aren't generating large mobile ad revenues, which is why Google is making a $750 million bid to buy AdMob, a company that has had more success in this space.  While Google waits for the FTC (Federal Trade Commission) to approve an acquisition, AdMob continues its reporting on mobile web usage by operating system.  

Credit: AdMob

If you're wondering why Apple needs to go on the offensive against Android (the HTC lawsuit being the possible "first shots"), you only need to look at this month's global mobile OS statistics from AdMob.  While Android grows by 2-3% each month, Apple has stagnated at 50% for the last three months.  Even though Android has a quarter of the market share compared to Apple's full half, if you look at just the US market you can see that Android is nipping at Apple's heels with only a 2% difference between them.  

Credit: AdMob

AdMob's statistics count the number of handsets and operating systems that hit their ads.

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