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$3 Billion a Year: Google Pays Off Apple

Google Search is the default for the mobile Safari browser on all iPads and iPhones. Google CEO Sundar Pichai is reaching deep in his pockets to keep it that way.

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Google Search is the default for the mobile Safari browser on all iPads and iPhones. Google CEO Sundar Pichai is reaching deep in his pockets to keep it that way.

Google is not content to just dominate the search engine market on desktops. The group from Mountain View also wants Google search to dominate on mobile devices.

Google search on Android and iOS

From the perspective of Google, the overall picture is already positive. Finally, Google search is already set on all devices with Android operating system by default.

An analyst of the investment and consulting firm Bernstein, Toni Sacconaghi, has found that Google is transferring $3 billion to Apple yearly in order to remain the top mobile search platform.

Why the $3 billion payments are money well-spent

You might be asking yourself if it is really worth it for Google to spend so much money just to be Apple’s default search engine.

The answer is: of course – and there are several reasons for this. First of all, Google takes an undisputed monopoly in mobile search through this investment.

With all Android and iOS devices, Google is handling more than 90 percent of all mobile search queries. A serious competitor (Bing, Yahoo, Yandex) does not exist globally.

In addition, iPhone and iPad owners are a highly attractive target group. Half of Google’s mobile search generated revenue is generated by Apple users, even though there are significantly more search requests from Android devices.

Apple also benefits from Google search

And the deal isn’t just good for Google. A few kilometers away in Cupertino, the deal is also making Apple happy.

Apple is providing its users with an excellent search engine, without paying for it (in fact, the extra $3 billion per year should help polish up Apple’s balance sheet).

Based on calculations by Bernstein analyst Sacconaghi, Google would be responsible for five percent of the total Apple profit this year. The share of profit growth compared with the previous year is again significantly higher at 25 percent.

The deal with Google search is therefore a win-win situation for both sides.

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Is your company GDPR ready? A checklist for start-ups!  

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For users it means more safety, for companies, more stress: the new European General Data Protection Regulation (GDPR). The GDPR has been in effect for over a year now and still presents a challenge for companies, especially for start-ups. How can a small company comply with all the regulations? The following checklist can help!  

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Social Media Feed with Juicer: Perfect for Your Website

It is not always easy to keep a company’s website up to date, to constantly add and update content. With Juicer, it’s now child’s play!

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It is not always easy to keep a company’s website up to date, to constantly add and update content. With Juicer, it’s now child’s play! (more…)

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PS: I Love You – Hotmail’s Growth Hack

When the Hotmail e-mail service was founded on 4 July 1996, nobody knew the term “growth hacking”. Nevertheless, the ingenious marketing ploy of Sabeer Bhatia and Jack Smith goes down in history as the first growth hack.

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It was the American Independence Day in 1996 – a deliberately chosen day. Developers Sabeer Bhatia and Jack Smith released their free email service Hotmail that day.

After a little more than 20 days – at the end of July, 1996 – the service was already being used by 20,000 users of the still young Internet. A respectable success, but the two founders wanted more.

The first growth hack in history

And so Smith and Bhatia discussed things with their investors. The discussion focused on the question of how the company could quickly get new users without a significant marketing budget.

The result of the brainstorming was a single line at the end of each e-mail sent via Hotmail:”PS: I love you. Get your free e-mail at Hotmail.” This is reported by author Adam L. Penenberg in his book* Viral Loop: From Facebook to Twitter; How Today’s Smartest Businesses Grow Themselves.

If you clicked on the blue “Hotmail” link, you were redirected to a registration page. There, you would receive all the relevant information on Hotmail’s offer. In addition, you were given the opportunity to create your own free e-mail account immediately. (That wasn’t standard at that time.)

Microsoft pays 12 million US dollars

Even though nobody knew the term “growth hack” in 1996, it was exactly what the Hotmail founders had succeeded in doing. With a simple trick, the company generated several million users – without having to place an ad.

While Hotmail took six months to break the 1 million-user barrier, the company reached the second million just five weeks later. When Microsoft took over Hotmail for 400 million US dollars just under a year later, the service already had 12 million users. At the turn of the millennium, there were 65 million users.

Today, Hotmail no longer exists. Since 2013, Microsoft has been promoting the first growth hack in history under the name Outlook, which has now spread to millions of computers and smartphones.

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