According to recent analysis by Goldman Sachs, Google generated $11.8bn in mobile search ad revenue in 2014 with 75% (or almost $9bn) coming from ads on iOS devices such as iPhones and iPads, says The New York Times. Half of this can be directly attributed to Apple using Google as the core browser in Safari, a deal costing Google between $1bn to $2bn per year.
iOS search revenue makes for $8.9bn in Google search ad revenue
Overall, Google reported $59bn in ad revenue with 20% being generated through mobile search ads. According to the Goldman Sachs report, $2.9bn of its total payments, Google pays Apple in TAC. Part of the reason why iOS generates more revenue for Google is that its users are generally better off, spend more time on their phones and hence are more valuable to advertisers.
Goldman also found that as many as 48% of iOS users would return to the default search engine Google if the deal between Apple and Google came to an end. This could prove profitable for the company.
iOS users are more likely to switch back to Google
For 2015, Google is projected to earn 81% of its overall ad revenue from search. In 2016, desktop search revenue is to decline to under 54% whilst mobile is likely to generate 27% of search ad revenue.
June 5, 2015