Saturday, March 31, 2012

Google Android Revenue Model

Recently, I have been working too much on Android-related stuff. One fine morning, during the ideation session with my crazy idea-maniac friend, I asked myself how Google is making bucks through Android. The first, most obvious, factor that came to mind was through ' Search Advertisement' as Google is a search company making money through advertisements. But, how about the other modes of advertisement revenue like In-App advertisement, what are the other contributing revenue streams? Is Google making money through 'Google Play' Store, how much? Tens of questions filled the already small empty areas of my brain map.

I did some research on internet, collected data, arranged some of my own thoughts in terms of logic, assumptions and reasonable estimates. And as a typical MBA, I made a framework and fitted all above mentioned data into it thereby arriving at 'Android Revenue Model'. I decided to present information in visual form rather than describing it in a typical and boring text form. Here it is (Hope it is self-explanatory):



As some of you would frown your eyebrows on some of my assumptions and estimates, but these are the best I could make. If you have any suggestions or better estimates for any of the components, please share with me. I hope it would help some of the uneasy marketing and Mr. curious kind of souls out there trying to understand this model and making plans/strategies based on this.

In the next post, I will try to talk about how Google can play on this revenue to influence Android device costs thereby trying to make some grounds into tablet market and position itself for the future tablet war with Apple and Microsoft (Windows 8).

Signing off....................

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