Google Sharing Revenue to Increase Android Market?

 

 

Google is sharing advertising revenues with carriers that use Android, according to multiple sources. Sources Say, Google is also cutting deals with the handset makers. The revenue-sharing agreements only occur when the handsets come with Google applications, like search, maps and Gmail, since that is not a requirement of Android. Google declined to comment, and said terms of its agreements with partners are confidential. A number of carrier and handset makers also declined to comment.

Some handset makers may be forced to do similar deals, but for those who aren’t in the advertising business, it could be trouble. On the flip-side, this is good news for carriers, which have been looking for new revenue sources that could help pay for the next generation of networks that will cost billions. And google is out there.

Advertisements in applications like gmail and maps are nearly non-existent, with the vast majority being displayed in search results. However, by many estimates the mobile advertising is set to take off. Google has agreed to pay $750 million for the mobile ad network AdMob. Google has been clear from the start that it planned to give away the operating system and make money on advertising, but new twist is to share in those money.

Samsung announced the new high-end Galaxy S, while Sprint (NYSE: S) announced its first 4G phone developed by HTC, and AT&T (NYSE: T) announced that the Dell phone will be available soon.  Google’s CEO Eric Schmidt had a keynote address at MCW. At the show, he said the company doubled the number of phones it was shipping over the past quarter to 60,000 handsets a day. Google could ship roughly 22 million phones this year by estimation. If it continues to double every quarter, it could hit 27 million.

“We share revenue on search, not on mobile applications,” a Google spokesperson said. “The same is true for non-Android devices that use Google as the default search engine.”

This was the recent comment from Google regarding this Mobile Ad Revenue Sharing.

nyse:mot, google, latest, advertising, android, mobile revenue, finance,