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6 Jan 2010

afl-v-wwf-tagteams Google’s event today was supposed to be about one device, the Nexus One. Instead, we heard a lot of: “more devices,” more manufacturers,” “more carriers,” “this is just the beginning.” Today was not about one device, it was about Google’s first step in helping to reshape the mobile landscape in the U.S. And thanks to the groundwork laid by Apple, it just might work.

Think about your cellphone and cellular service five years ago. Both were likely horrible. But you were content in your misery, because you didn’t know any better. Then came the iPhone. It was a mobile device that was so good, people were willing to ditch their existing service providers en masse (I did) to go to the only one that had it: AT&T. And while you might think that would be a big plus for AT&T, it actually shifted a massive amount of industry power to Apple. They had the device that everyone wanted. And they used that leverage to renegotiate their exclusive deal with AT&T to pay out a huge amount of money for each device sold.

Sure, there were hot selling mobile devices before it — the Motorola RAZR, for example, was the best selling phone for many years in a row — but the iPhone had two advantages: 1) Thanks to Apple’s complete control over the device, including, maybe most importantly, its software, they created a user experience that the RAZR never could. 2) Thanks to the App Store, there is some amount of lock-in to the device because users are spending a ton of money on apps and if they switch phones, those all go away.

With the iPhone, Apple has created a device that all the other U.S. carriers lust after. And that, in turn, has allowed Google to come along with Android. When the G1 launched a little over a year ago, it was the first of many devices to be heralded as a “iPhone killer.” It wasn’t. But Google didn’t care about that. All that mattered to them at the time was getting their foot in the door of an industry that they, like Apple, had not at all been a part of leading up to that first device. It worked. The carriers were so desperate for an “iPhone killer” that they seemed willing and ready to negotiate with Google to get as many devices out there as possible to ride the Internet-enabled smartphone tsunami that the iPhone earthquake started.

As time went on, and Apple’s exclusivity with AT&T remained intact, Google honed their skills, and improved their software. Their manufacturing partners got better too, culminating in Motorola’s Droid, released late last year. Also not an “iPhone killer,” as I wrote that the time, that device too, was never about that from Google’s perspective (though it was from Verizon’s). It was about continuing to inundate the market with their devices and gain partnerships. With some 20 Android devices now out there, the time was right for what Google did today, which is launch their own agenda to blow up mobile industry as we know it in the U.S.

Now, that may sound a bit extreme, but just look at what Google did today. They launched an unlocked phone that you can buy directly from them. Now, this first device may not have much of an impact because it’s too expensive ($529.00) for its limitations (it will only fully work on T-Mobile in the U.S.), but it’s a first step. More importantly, look at the page pictured below. Is there any question what Google is doing here? They’re taking the traditional mobile model in this country, where you first choose your carrier, and then choose your phone, and turning it upside down. It’s what Apple started with the iPhone. But Google goes farther, because they already have multiple carriers (in this case, T-Mobile and Verizon, coming this Spring).

Screen shot 2010-01-05 at 6.50.37 PM

So why on Earth are the carriers playing ball with this? Well, they really don’t have a choice. Every carrier not named AT&T does not have the iPhone, but wants it. Since they can’t have it (not yet, anyways), they’ll settle for the next best thing, which are now more clearly than ever these Android devices. Google, of course, controls those — and increasingly so, now that they’re dictating hardware specs and features to manufacturers.

And who did Google have on stage today at the event? Two CEOs of two manufacturers: HTC and Motorola. Google has these guys in their pockets because it’s not like their going to team up with Apple to make a device (Motorola tried, and failed). And other partners, like Microsoft, are proving to be less than ideal in an iPhone world. So with the manufacturers on its side, Google has all the leverage it needs over the carriers. And that’s why we’re seeing them fall in line with the new mobile world order. So far, it is just T-Mobile and Verizon in the U.S., but Google alluded to the fact that they’re talking to the other ones as well. That means Sprint and likely even AT&T, for the inevitable day that they do lose the iPhone exclusivity.

It’s not hard to imagine going to a website for a phone one day in the near future and seeing a list of all the carriers. And it will be even less of an issue when CDMA and GSM are replaced by LTE, which will allow for more universal devices. Google set this in motion today. And it’s a model Apple is likely to follow when the iPhone gets to more U.S. carriers. Undoubtedly, the other big players, BlackBerry and maybe even Palm would like to do this too, but they haven’t had either the leverage, or the gall, to stand up to the carriers in this country the way Apple and Google have. Maybe they will in the future. But to the victors go the spoils.

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Tags: Android, Apple, device, existing service, google, iPhone, motorola razr, T. And, today, U.S., U.S. And, U.S. Now

Google Looks to Dominate iPhone and Android Advertising With AdMob Acquisition

In: web resources

9 Nov 2009

Google announced this morning that it has acquired 3-year old mobile display ad serving platform AdMob for $750 million, half the price it paid for YouTube in 2006. Why did Google make this move? Two reasons stand out.

First, AdMob is a very strong company in a sector (mobile advertising) that everyone expects to become much more important in the future. Second, this is a chance to make a big move towards monetizing on Apple’s iPhone platform while making sure that no one else does something similar to Android in the future.

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AdMob puts display ads on mobile web pages and inside mobile applications. On Google’s page detailing the acquisition today the company used imagery to say that mobile search ads had been its primary focus to date, while AdMob’s focus was outside search and inside apps and pages. Google has an ad program for mobile apps to, though, called AdSense for Mobile Apps. You’ve probably seen it if you use the Pandora iPhone app.

AdMob is Strong in an Early Market

Apparently Google’s mobile apps ad platform hasn’t been doing so well, at least not compared to AdMob. AdMob has been growing fast. VentureBeat’s Matt Marshall did some back of the envelope math and estimated that the company was pulling in $40m+ in annual revenue 18 months ago, which was just 18 months after it launched.

That was in a radically different time for the mobile market. As our own Sarah Perez wrote two weeks ago in a post about AdMob’s latest mobile metrics report:

Believe it or not, it was only a year ago that the Motorola RAZR scored as the number one phone here in the U.S. while the iPhone was the only touchscreen device to even make the list of top ten handsets. Only a year later, and so much has changed.

That was durring the RAZR era that AdMob was at a pace that Matt Marshall said “looks headed to IPO-type revenues within three years.”

Planting a Flag on the iPhone, Protecting the Android Inventory

Now the iPhone rules. AdMob’s own numbers claimed that mobile traffic from the iPhone and iPod touch grew 19X over the last year. AdMob is making a strong play on the iPhone. TechCrunch reported this Spring that the company claims to be the biggest mobile app ad network on the iPhone and is working on a traffic exchange system for app promotion similar to what’s been done on Facebook.

Now move those efforts over into the Google column and Google is making money off of the free apps on Apple’s platform. That’s probably not something Apple feels great about.

Meanwhile, Google’s own Android mobile OS is no slouch, either. Admob reported this Fall that Android now accounts for the 2nd largest share of mobile web traffic (far) behind the iPhone, at 17% in the US, beating RIM and Windows Mobile.

Does Google want to see someone else leading the ad monetization on its own mobile OS just like it is now poised to do to Apple? No way. The answer? Buy AdMob.

It’s a very smart move. Perhaps unsurprisingly, Google’s share price rose this morning to its highest point in almost 18 months.

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Tags: AdMob, google, iPhone, matt marshall, mobile apps, motorola razr, move, Pandora iPhone, Platform, Sarah Perez, U.S., US, year, YouTube

Weekly Wrapup: The Web in 5 Years, Hulu’s Plans, Google Wave Use Cases, And More…

In: web resources

31 Oct 2009

In this edition of the Weekly Wrapup – our newsletter summarizing the top stories of the week – we analyze how Google CEO Eric Schmidt thinks the Web will evolve, review Hulu’s latest plans to make money, investigate use cases for Google Wave, ask why VCs aren’t investing in Augmented Reality, review the latest Mobile Web statistics, and more. We also check in on our two main channels: ReadWriteEnterprise (devoted to ‘enterprise 2.0′ trends and products) and ReadWriteStart (dedicated to profiling startups and entrepreneurs).

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Google’s Eric Schmidt on What the Web Will Look Like in 5 Years

Google CEO Eric Schmidt envisions a radically changed internet five years from now: dominated by Chinese-language and social media content, delivered over super-fast bandwidth in real time. Figuring out how to rank real-time social content is “the great challenge of the age,” Schmidt said in an interview in front of thousands of CIOs and IT Directors at last week’s Gartner Symposium/ITxpo Orlando 2009.

Mobile Web’s Explosive Growth

Mobile ad firm AdMob has revealed the dramatic changes the mobile industry has seen in their latest Mobile Metrics Report. It was only a year ago that the Motorola RAZR scored as the number one phone in America. One year later and half of the top ten are touchscreen devices, six include Wi-Fi capabilities, and six have mobile application stores. And as you would expect, this new crop of super-powered phones are making heavy use of the mobile web.

Why Aren’t VCs Backing Augmented Reality?

Some people believe that Augmented Reality (AR), the class of technologies that place images or data on top of other views of the physical world, could be the web browser of the future. AR has rocketed out of the research labs and is catching mass market interest fast – e.g. mobile phones displaying restaurant reviews when you look through your phone’s camera. Why then are VCs not investing more in Augmented Reality? Here are three reasons why we think investment in this sector has been slow so far.

Facebook Announces Roadmap for Developers

This week Facebook published a developer roadmap outlining upcoming relevant changes and a rough timeline for each. Changes include developer access to user emails, more prominent app displays on user profiles, all-new homepage dashboards for apps and games, and improvements to Open Graph and Analytics APIs. Read on for details and screenshots of the new faces of Facebook apps.

SEE MORE WEB TRENDS COVERAGE IN OUR TRENDS CATEGORY

ReadWriteEnterprise

Our channel ReadWriteEnterprise, devoted to ‘enterprise 2.0′ and using social software inside organizations.

Calendaring, Scheduling Meetings: Timebridge CEO Interview Reveals Strategic Importance of This Space

We have looked at Calendaring many times (such as in our round-up of 10 players). In our own work, we have started working with both Tungle and Doodle. To understand more about why this market is strategically interesting, we recently spoke with Yori Nelken, CEO of Timebridge (see our previous coverage here).

ReadWriteStart

Our channel ReadWriteStart, sponsored by Microsoft BizSpark, is dedicated to profiling startups and entrepreneurs.

Paul Graham: Priority Access to Twitter Is Practical Necessity

If hardcore hackers had any doubts whether the real-time web was a legitimate development environment, Y Combinator co-founder Paul Graham is dispelling them. In an interview with Graham, ReadWriteWeb learned that the entrepreneur-turned-investor issued a “Request for Startups” (RFS) asking for ideas from companies utilizing Twitter and Justin.tv’s live video API. Groups who are accepted to Y-Combinator and fall under these categories will be given “priority access” to Twitter and Justin.tv.

SEE MORE STARTUPS COVERAGE IN OUR READWRITESTART CHANNEL

Web Products

Google Wave Use Cases: Education

Google Wave is a much hyped new Internet-based communications and collaboration platform. It was announced at the end of May, released as a ‘Preview’ product shortly after and 100,000 more invites were made available at the end of September. Early users reported mixed feelings. But one month after Google Wave was opened to tens of thousands of people, how are people using it now? What use cases are being discovered? We started this series by looking at the education sector.

What are Hulu’s Mysterious Plans?

Everyone is looking to Hulu as the future of Internet TV. A joint venture between several major networks, Hulu delivers free, ad-supported programming via online streams – an untested model for long-term profitability, at least when it comes to television. While consumers have been enjoying the service since its launch in 2007, recent statements by a News Corp exec have people wondering: can Hulu make the ad-supported model work? Or does the company have other plans?

Google Launches Music Search: Partners with MySpace, Lala, Gracenote and Others

This week Google announced the launch of Google Music. This new service is powered by Lala and MySpace’s iLike. Other partners include Gracenote, iMeem, Pandora and Rhapsody. Google has also partnered with the major music labels: EMI, Sony Music, Universal Music Group and Warner Music. Through Lala and iLike, Google will also be able to feature music from a large number of independent labels.

Google Search Gets Personal: Social Search Launches in Google Labs

Social Search went live in Google Labs this week. Google announced that it was working on this Social Search feature at the Web 2.0 Summit last week. Social Search taps into a user’s social network profiles and displays relevant links and status updates that members of a user’s own social network have shared at the bottom of the default search results page. According to Google, Social Search will enhance the search experience on Google by providing users with more personally relevant search results.

Brizzly Adds Facebook – Aims to be The Blogger.com of Social Media

Brizzly wants to be to microblogging what Blogger.com was to blogging five years ago. Currently, Brizzly offers a user-friendly browser-based interface for Twitter and Facebook. The Facebook integration went live this weekand more social media applications will be added as the product evolves. Brizzly shares much of the same philosophy as Blogger. It’s simple to use and aims to make microblogging easy to understand and use by a mainstream audience.