Google Mobile And The Money Machine: How Search And Platform Development Earns Billions

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Have you ever stared at your Samsung Galaxy S III, Nexus smartphone, or any other Google Android device and wondered why the company would give away such an advanced mobile platform at no cost to manufacturers. The truth is everything has a cost, and Google’s payments are directly related to the advertising revenue Google Android and its other free mobile and web platforms offer to the company.

From Google local search to Google Maps, Google Adwords, and various other platforms, Google has become a staple of advertising efficiency.

The team at WordStream recognizes the influence Google products have on our decisions and ultimately our pocketbooks. In response to Google’s influence, Wordstream has rated Google’s mobile platforms based on their ability to attract ad dollars.

As expected, Google’s top products earned A and A+ ratings. For example, Google Adwords received an A rating thanks to the ease at which publishers can maximize targeting and the ease to which users can find Google Adwords ads and use them to find products and services they want to purchase.

Also scoring a solid A+ was Google Maps. The Maps platform is a no-brainer. After all, one in four Google searches serve location-based ads to users. Since mobile tends to act as a “here and now” platform, the ads from Google Maps are more likely to result in immediate actions on behalf of users.

As expected, some Google-owned properties still have a long way to go. The newly acquired Motorola Mobility division received a C+. Google recently admitted that in purchasing Motorola the company was left with an 18-month road map for which it had very little leeway. Making matters worse, the search giant’s settlement with the FTC basically gave up Motorola patent rights to competitors at FRAND reduced and lower pricing.

WordStream notes that Google Glass is supposed to be ads-free, but that doesn’t meant Google won’t find new and “exciting” ways to deliver cash flow from the wearable technology. Wordsream placed a TBD rating value on Google Glass.

Check out the full infographic below for a full look at how Google mobile products make money for the company.

How Google Makes Money From Mobile