The Business Insider are reporting that the primary reason why so many carriers are happy to jump aboard the Android train isn’t because it offers an excellent product, nor because it has an ever growing application store. It isn’t even because Google are just so cool right now, right? As you might expect, a significant contributory factor as to why carriers are ready to adopt Android is because Google are cutting them in on advertisement revenue. Money talks folks, money talks.
PaidContent’s Tricia Duryee reports that Google’s deals with mobile carriers (and some phone makers) include an advertising revenue sharing agreement, provided they pre-install Google apps like Search, Maps, and GMail on phones. This should come as no surprise, given how long phone and PC companies have been paid to pre-install stuff. (Hello, free Prodigy trial?) MediaMemo’s Peter Kafka adds that he hears it’s a “substantial” revenue share.
Who is to say whether this is the key reason why carriers seem to be favorable towards Google? There are so many other things to consider its untrue. Will Microsoft match these types of deals when Windows Phone 7 Series arrives? Will companies like Palm sink in the fail boat because they have little to no advertisement revenue to share? Anyone who has any thoughts on this we’d love to hear them.