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

theprof00 on 12 February 2013
disolitude said:
wick said:
A small price to pay for the amount of data they will collect


Thats something people don't seem to understand around here. Data mining is huge money for these companies and in general...

A place like Lavalife and Ashley Madison makes more money off the data they sell to advertisers than its official service. All they do is tag your machine with a cookie and then turn around and say "ok, we got a male 24-30 years old, income of 60K and likes computers, hockey and dogs. Who wants to target ads to this guy?". And adertisers and publishers pay big money for this data.

This is the main benefit to having Google on iPhone. While they are unable to collect personal information, they do know what mobile users do and like on iphones which gives them behaviour targeting opportunities. 

Yes, but how many users will just switch the default to google immediately?

ie;

default is google= install base will be (Sold-(users who have Search engine preference that isn't google))
Default is Bing= install base will be Users whose search engine preference is Google.

The decision comes down to googdefault - bingdefault =x
Is x worth 1B$

Say 50m google default - alt pref = 40m
And say bing default = googpref - 50m= 35m

Is 5m worth 1B$

How many users does google think will auto default google. That's the question. If MS values default at 1B$, that's because they will have far more users as a default than if people switched to bing. I would expect Google values it far less.



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wfz on 12 February 2013

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 $1.1B.

So what about this isn't normal?



disolitude on 12 February 2013
theprof00 said:
disolitude said:
wick said:
A small price to pay for the amount of data they will collect


Thats something people don't seem to understand around here. Data mining is huge money for these companies and in general...

A place like Lavalife and Ashley Madison makes more money off the data they sell to advertisers than its official service. All they do is tag your machine with a cookie and then turn around and say "ok, we got a male 24-30 years old, income of 60K and likes computers, hockey and dogs. Who wants to target ads to this guy?". And adertisers and publishers pay big money for this data.

This is the main benefit to having Google on iPhone. While they are unable to collect personal information, they do know what mobile users do and like on iphones which gives them behaviour targeting opportunities. 

Yes, but how many users will just switch the default to google immediately?

ie;

default is google= install base will be (Sold-(users who have Search engine preference that isn't google))
Default is Bing= install base will be Users whose search engine preference is Google.

The decision comes down to googdefault - bingdefault =x
Is x worth 1B$

Say 50m google default - alt pref = 40m
And say bing default = googpref - 50m= 35m

Is 5m worth 1B$

How many users does google think will auto default google. That's the question. If MS values default at 1B$, that's because they will have far more users as a default than if people switched to bing. I would expect Google values it far less.


I fully agree with you. I dont think this is worthwhile to microsoft or google. microsoft seems to be getting out of advertising in general. they appear to be getting rid of their atlas advertising platform and selling it to facebook.

facebook + bing default ios search however, using this new graph aearch facebook is releasing...this may be something new and worthwhile for ios7/iphone6.



NiKKoM on 12 February 2013
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..



 

Face the future.. Gamecenter ID: nikkom_nl (oh no he didn't!!) 

wfz on 12 February 2013
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.



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theprof00 on 12 February 2013
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..

You were at a google meeting?



disolitude on 12 February 2013
theprof00 said:
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..

You were at a google meeting?

Hes actually right. I've attended many Google seminars and presentation about desktop and mobile advertising.

Mobile advertising was around a 2 billion dollar industry for Google in 2012 which is peanuts but the industry is its infancy. There are very few working mobile ad exchanges, real time bidding is not available, monirity of advertisers have mobile freindly websites... Once these things pick up, mobile revenue will eventually surpass desktop.



Mmmfishtacos on 12 February 2013

I think google should keep their money. It's simple. Let MS pay the billion and the next time you load a google app, it should tell you that Google isn't your default search engine, would you like to change search engines now? One click and google is back to your default search engine. Besides, who uses bing anyway? I rather that billion be applied towards the rapid expansion of google fiber.



theprof00 on 13 February 2013
disolitude said:
theprof00 said:
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..

You were at a google meeting?

Hes actually right. I've attended many Google seminars and presentation about desktop and mobile advertising.

Mobile advertising was around a 2 billion dollar industry for Google in 2012 which is peanuts but the industry is its infancy. There are very few working mobile ad exchanges, real time bidding is not available, monirity of advertisers have mobile freindly websites... Once these things pick up, mobile revenue will eventually surpass desktop.

Interesting. You guys attend google meets? I'm jealous.



irstupid on 13 February 2013

Meh I say don't renew the deal. Let Apple not have google. Then wait till the fans bitch and moan because they want google again and then Apple is the one begging Google to be on their phone.

Be like the maps all over again. While obviously bing isn't anywhere terrible like the maps where, most people just tend to prefer to stay the same, as you can see big time with iphones. Nothing has changed in their 10+ phones they have released.