Will Google pay $1 billion to keep Bing from being the default iOS search engine?

[wfz]

NiKKoM said:

wfz said:
I don't understand why this is news. From what I'm understanding, absolutely nothing about their agreement is changing - the reason why Google will have to pay so much is because the pricing is based on the number of devices sold.

If Google pays 1$ for every device, and makes roughly $1.10 in revenue for every device their search engine is on, then when Apple sells 10 devices, Google will pay $10 and gain $11.00. When Apple sells 1B devices, Google pays $1B and gains $11B.

So what about this isn't normal?

your math.. :P

anyway the amount of traffic the ios devices makes it worth the 1 billion in the future.. But google still sucks in mobile advertising.. For every Desktop CPM dollar mobile makes like a fifth.. Thats because most advertising money comes from online stores and we just dont like buying stuff surfing our mobile.. I was at a google meeting last month and they know they have a lot of work to do..

Yeah, I meant $1.1B. Unless there is some sort of lesser return in per-unit revenue the more units that exist, my point still stands. Google isn't somehow worse off due to this, so renewing the contract would appear to make sense.