Yesterday night, when I was on the bed, about to sleep, one thought came in my mind….
Google works so hard on the Android Open Source project and their team continuously improves Android and releases new versions. Naturally for this, they require a lot of money. But, they distribute Android for Free then, How Does Google Makes Money with Android?
So, I researched the history of Android from its beginning, i.e. when Google brought it in 2007. And what I found was Google was investing heavy money in the development of Android. They are dedicated in Android Open Source project and are the only big reason why Apple hasn’t taken over the mobile phone market.
But, it is very interesting to know that Google doesn’t even charge a single rupee (they sell licenses for using GAPPS) for mobile phone manufacturers to use Android Mobile Operating System. We can imagine how big money Google can raise with Android. But the revenue generated from Android is just in very few percent of its total revenue share.
Confused, I began to find out the reasons of this. And first thing I found was Google generates its maximum revenue from Online Advertising and that, “Google is an Advertising Company”
Google knows who you are, where you are, your past behaviour, links and visits, and thus they display very relevant ads to you so as to establish a better connection of advertisers to customers. They display ads everywhere, search, websites, emails, mobile, etc. And they do that very efficiently. They collect the users data and have amazing techniques to know you. They do it by using their Analytics system.
And this is their main focus. Google instead of generating more money from Android, uses its mobile OS to get the user behaviour and data to show them relevant search and ads. They integrate Google search into every Android device and thus they are connected to you most of the times through your phones. Thus, they generate more and more efficient advertising.
Also, instead of charging for Android OS, they charge for the Play Store. For posting every app on the Play Store, you have to pay Fees to Google, if it is paid app, they earn money through it, if it is Free, still they earn money by Google’s Mobile Ads. Thus, for every app you use, Google makes money from it.
Google is definitely not after Android to make money but it’s after its advertising. Nowadays, computers are getting smaller & smaller and the craze of smartphones is booming. So, through Android, Google reaches to your pockets and knows you better to show you more relevant ads and generates more revenue.