Android in three years has taken over the world and
continues taking mobile OS market share. Google has done great job scaling the
operating system worldwide. In this blog post I wanted to share two Asymco
blogs that go over success metrics beyond the market share:
- Profit
- Mobile web traffic
In a for-profit endeavor it is very important to generate
positive cash flow though revenues from operations, which Google has been
generating. However, the profitability is another story. In the summer of 2011
Google has crossed $3 billion mark, as I wrote it was no longer “one trick pony”.
However, since crossing it’s income (revenue-cost) started to slide, which
attributed to challenge monetizing mobile traffic. More and more of web
searches are done on mobile devices and Google has not been able to monetize it
as well as non-mobile traffic.
In addition, web traffic generated by ‘dominator’ Android is
proportionally small: about 1/3.
“Of the phone traffic, iOS devices were about two thirds of
traffic and Android one third. Of tablet traffic, iPad was 88%, Kindle and Nook
were 5.5% Galaxy Tab was 1.8% and other tablets were 4.4%.”
As conclusion, Google’s business
model is built on monetizing web traffic. Mobile has been hard to monetize as
CPC and CPM are lower. On top of that Android users do not browse web as much
as iOS users presenting additional challenge.
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