Time is limited

The Business Models of Apple and Google - Part II

2011-04-20T19:59:00.000-07:00

2. Revenue Source

Selling devices a lot or Advertising something by distributing a free-service are differed from earning profits. The one is visible and another is invisible, though their profit-making way is almost same view, or else their businesses are utterly same except for only different name.

1) App Market

App Store

In July 10, 2008, a start which will change a shift of power in the mobile industry is affected to every industry regardless any form of industry like mobile device, service, digital content, developer’s business area and people’s life-style. The App store is not an entirely new thing. Apple has already had iTunes service market that users enable music contents to purchase via iTunes store. Apple simply provides a market to sell or purchase the application was made from individual or company. This is called “Eco-system”. In the Wikipedia, “An ecosystem is a biological environment consisting of all the organisms living in a particular area, as well as all the nonliving, physical components of the environment with which the organisms interact, such as air, soil, water and sunlight. It is all the organisms in a given area, along with the nonliving factors with which they interact; a biological community and its physical environment.” That is to say, a seller in the store is not related to Apple, at the same time, a consumer is not related to that too. The store just automatically operates by itself under Apple’s management.

With 380,000 and more, including free or paid apps, the third party applications, those applications are enforced Apple’s initiative unlike other’s store?e.g., Android Market by Google, App World by Research In Motion, Market Place by Microsoft, Ovi Store by Nokia, Samsung Apps and Samsung Electronics and so on.

30% of revenues from the store go instantly to Apple, and 70% go to the seller of the application. As of January 20, 2011, the App Store had 10 billion downloads, which held the event “10 Billion App Countdown”. This ratio is applicable to all service’s revenue policy of Apple. For example, the App Store with developers, iAd with Advertisement Agent, and Digital Content with Publishers.

Android Market

The Android Market was announced on August 28, 2008 but it was not made available of the service immediately. And several months later, was available to users on October 22, 2008. Google does not completely earn the money through this service and so, the profit sharing is 10% revenues go to Google directly, and the rest goes the seller. Instead, Google has shipped the ads to the Android Market. Exactly, the particular advertisement is to expose to each app. The more users are about to install an app to their devices, the more the ads are exposed some ads to the users. This is a purpose of distributing Android OS for free. With 200,000 applications, Google enlarges the app business area supporting android-based device companies. However, there is not always meant to make profits with thousands of applications according to iSuppli’s article.

According to the figure above, Google Android Market ranked no. 4 on the list. This means that many applications are not guaranteed higher earnings. In the perspective of developer, there is much leeway of have a second thought.

2) Advertisements

Ads business in Google is the most significant role generating revenue as source of income whereas in case of Apple, its company revenue source is to sell out its own device like iPhone, iPad, iPod touch, and Mac products. As I’ve mentioned above, all services are focused on selling the devices.

A newly released platform as ads business, the platform provides advertisers to develop advertisement for products in the App. It means that this app enables the advertisement to show their product’s advertisement not to redirect the site in the App. For instance, a certain ad in the Game app, which is embedded in the app itself, this app doesn’t send them to a browser without redirection when users click to the ad in bottom line and show the product details to the users in the app like regular app.

Admob

In November 2009, Google acquired AdMob mobile advertising company with $750 million. Originally, Apple was about to acquire, but Google snaps up the company and even higher than Apple’s proposed price. The company AdMob offers advertising solutions for many mobile platforms, including Android, iOS, webOS, Flash Lite, and all standard mobile web browsers. AdMob is one of the world's largest mobile advertising platforms and claims to serve more than 7.1 billion mobile banner and text ads per month across mobile Web sites and handset applications.

Mobile advertising business area is not limited to advertise products or services and even non-shaped things. All things are involved with this area. Therefore, two big companies and more do not give up this market and they are seeing huge potential source of revenue, looking to earnings with newly released services.

The Business Models of Apple and Google - Part I

2011-04-18T17:19:00.000-07:00

1. The Direction of Key-Business

Apple and Google are a different characteristic company and their roads to the customer are different, but the destination is almost same. Apple closely approaches to the customer by device and service accordingly, whereas Google only reaches out to the customer by free-service acquiring some companies and then, customizing them. Namely, Apple is mobile manufacturing company and Google is typical Software Company with openness-oriented culture.

1) Apple

At the very first time of founding the company, Apple has been consistently focused on a new device of new class of product. Currently, Apple was opened a new product category of its industry. A start of innovation is like this. Looking back in 2007, Apple has launched a new mobile product not to have a product category its own lineup. This is an iPhone with a sensational response of customer. And then the following year, Apple has rolled out App Store to the public and proposed a business model at the same time. There is no one realizing regarding the huge impact of its industry. So called, the eco-system, which is operational individual developer of itself, is not made of forcing the individual developer to develop a mobile application and so, anyone persists to do that. A purpose of creating the App Store is to sell the devices as many as possible, so market share is well-shown to the result of that. Selling the device as much as possible is a final goal.

2) Google

Google is to mainly earn money from ad business. All business area is concentrated on advertising some forms of media through its web or mobile. Let me give an example of business area. As a representative example, I can mention a search business. Search-based business model could deliver a result that users are about to look for something, somebody’s information, some images or whatever its shape. In the meantime, users are interested in their results and then, at the right side is placed advertisement showing something relevant to their searched results. Like it or not, user might click the advertisement to procure wanted results. In addition, it mentions OS area. Google has already developed its own operation system as Chrome OS some years ago, but Google is put aside Chrome OS to a certain corner and they acquired a mobile OS company having a potent and powerful mobile operating system in August of 2005, and so, Google has provided smartphone operation system for free and with advertisement. At present, Google’s Android became the dominance force in the handset operating system arena. In a word, Google is search- and advertisement-based company.

Service	Apple	Google
■ Mobile OS version (Phone)	iOS 4.3	Gingerbread 2.3/ Honeycomb 3.0
■ Operating System	Leopard 10.6	Chrome OS
■ App Market the number of Apps	App Store ( 300,000 and more)	Android Market (200,000 and more)
■ Social Network	PING (Share its music-favorite with using Twitter)	Google Buzz
■ Ad Business	iAd	Admob
■ Web App Store	Map App Store	Web App Store
■ Cloud Services	MobileMe	Google Apps
■ E-Books	iBooks	Google Books
■ Video Service	iTunes	YouTube
■ Email	MobileMe	Gmail
■ Navigation	Place Base	Google Maps
■ Search	-	Google
■ Browser	Safari	Chrome Browser
■ Living Video Hardware	Apple TV	Google TV
■ Tablet	iPad	Honeycomb-based
■ Web Software	QuickTime	Google Apps
■ Portable Media Player	iPod	-
■ Gaming	App Store	-
■ Music Service	iTunes	-
■ News (Digital format)	iPad (News Daily)	Google news (Time Warner/Condé Nast/Hearst)
■ Subscription Service (In-app Subscription)	New Subscription Service	Google One Pass

[Figure1. Service Comparison Table]

A Business Model for Mobile Ads

2010-06-27T21:44:00.000-07:00

This post covers a type of advertising business models of some companies, like Google, Apple, and Twitter as representatives, provides their business ads model. All models this document mentions are based on blogs, articles, RSS news feed and some types of suggesting opinion tech experts publish.

※ What is Mobile Web and Apps?

Mobile Web
…is a channel for delivery of web content, which offers and formats content to users in awareness of the mobile context. The mobile context is characterized by the nature of personal user information needs (e.g. updating your blog, accessing travel information, receiving news update), constraints of mobile phones (i.e. limited screen size, keypad input) and special capabilities (i.e. location, connection type such as Wi-Fi, 3G or WLAN)
Mobile Applications
Software or content that consumers download to or find pre-installed on their mobile phone and then resides on the phone. Examples include applications such as games, news readers(RSS) and lifestyle tools. Downloads are accessible only to consumers with appropriate mobile phones and data plans.

-“Quoted from Mobile Ad Overview”

▲ Apple - iAd

1) Apple is set to announce that it has acquired Quattro Wireless for $275 million.
2) Both innovative start-ups are aimed squarely at the fast-growing market to advertise on smartphones.
3) Apple has provided for Interaction and Emotion. there has not concluded with seeing to or interaction with something. It has kept you in app with viable interaction and capable of deliverable emotion.
4) Jobs said,
Not "People aren't searching like they do on the desktop”, but "They're using apps.”
5) Apple’s platform will let developers and marketers embed interactive, dynamic ads within apps.
6) An iAd combines Interaction (a characteristic of the Web) with Emotion (which TV ads apparently excel at).
7) Apple's going to sell and host the ads, and give developers 60% of the revenue.
8) Apple’s plans for in-app ads that about to get a lot more interactive--possible even fun.

▲ Google mobile ads

Small screen. Big opportunity.
Audiences increasingly browse the web and use web applications from their phones. Google mobile ad technology is part of Google's commitment to the mobile platform and provides new ways for advertisers, content providers, and developers to capture this fast growing opportunity.

Introducing Google Mobile Ads
Connect with the growing number of mobile Internet users while they're on the go with Google mobile ads. With Google mobile ads, you can choose from text or display ads across our Search and Content Networks, in mobile applications, and on YouTube mobile.

1) Google announced an agreement to acquire AdMob for $750 million--that deal is currently facing intense scrutiny from the Federal Trade Commission(FTC).
2) AdMob is a mobile advertising marketplace that connects advertisers with mobile publishers.
3) All ads are run on an auction-based pricing system. (ESPN, CBS, Geico and Starbucks)
4) Landing Page Builder: Mobile landing page creation.
5) AdMonitor: Live data of who is viewing mobile ads around the world.

▲ Twitter 1) Serve up ads based on keywords in Twitter search queries.
2) Appear at the top of the search results page, with small text indicating they were sponsored. That ad is itself a tweet.
3) Initial ad partners include Best Buy, Virgin America, Starbucks, and Bravo.
4) Advertisers will be playing on a “CPM”(Cost per Mile) basis initially, with plans to adjust the model once Twitter can better gauge how people are engaging with Promoted Tweets.
5) Unlike search ads on Google, Bing or Yahoo, there will only ever be one Twitter ad displayed at a time.
6) “Resonance”: The basis for pricing based on a metric. Impact judged on… How much a tweet is passed around. Marked as a favorite. How often a user clicks through a posted link.
7) All in All, paying for ads based on the lift in resonance over a standard tweet.
8) On the Blog post

" Promoted Tweets will also appear in users' timelines. At first they will just appear in the timelines of those who follow the particular brand, just like normal tweets. But Twitter suggested that the ad platform will be rolled out further so that Promoted Tweets will appear in users' timelines if they are deemed relevant. "

" Since all Promoted Tweets are organic tweets, there is not a single 'ad' in our Promoted Tweets platform that isn't already an organic part of Twitter. This is distinct from traditional search advertising and more recent social advertising."

▲ Microsoft

1) This estimates the mobile ad firm could fetch in excess of $500 million.
2) Skeptics question exactly why Microsoft needs to add Millennial Media to its arsenal--the software giant acquired mobile advertising firm ScreenTonic in mid-2007, although Millennial encompasses a far broader audience than Microsoft's existing mobile ad initiatives, reaching more than 80 percent of all U.S. mobile web users.

※ Conclusion

1) Apple has proposed a new type of ads platform, which is interactive and emotional, an old model of ads is simply showing something, Apple makes a base of communicating with users and ads providers. Nike and Toy Story 3 of their ads app are shown as an example.

2) Google’s mobile ads? Not to mention it. That remains to be seen it.

3) Twitter ads is tweet. And what is it? Ads tweet is tweet. Although it is ads, it doesn’t provide a priority of placing first. Ads is useful, on the other hand, the tweet give an irksome to twitter user. If remove like that, there make a rule for ads model. For example, it shows an ad tweet related to keyword of user tweet, or provides information of user related to.

4) Microsoft is busy to follow a smartphone leader, which is like Apple, Google, and so on. Yet, MS would not to be seen it.

Stay Hungry. Stay Foolish.

2007-12-21T03:36:00.000-08:00

Steve Jobs said the title in the commencement Speech of Stanford Univ. in 2005. I was so impressed his speech and even to be fresh challenge to me. That word is hitting my mind in this day and age.Take a look a little bit what he's saying...

" You've got to find what you love. And that is as true for your work as it is for your lovers. Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do. If you haven't found it yet, keep looking. Don't settle. As with all matters of the heart, you'll know when you find it. And, like any great relationship, it just gets better and better as the years roll on. So keep looking until you find it. Don't settle."

Most of people are working for company to earn money. Yes, that's right. I don't want to blame what they're thinking. But, there is important to knock my mind as one thing. Everybody want to do what they're loving. Unfortunetely, it's always not. In here, I am going to emphasize on point which the successful people have got to find what you love consitently.
So, I will find out what I love to do. At the first time, I wanted to do a lot of things when I was a middle school. However, my house didn't have much money. I couln't tell anymore. Even so, I won't regret middle shcool life. It was the best time in its degree.
Anyway, It's really important to have big dream regardless your condition.
That's it. No big deal.

Soyjar

2007-08-31T07:42:00.000-07:00

This place is in front of Korea Folk Village gate.
I've standed at soyjar place.
I knew something was as it should be.
What I knew something is little familiar to me.
In my hometown Busan, my family is still using soyjar.
Escpecailly, soybean paste is to have to put into soyjar.
And then, we could taste real soybean paste from soyjar.

These day, most of people use refrigerator to store everything.
But, old people used to pack away on the outdoor ground.
Sometimes, I miss that time.

Build up your creative thinking

2007-08-30T00:17:00.000-07:00

1. Understand People
2. Discard your prejudice.
3. Travel a lot
4. Make friends different from you
5. Fall in love
6. Listen to Miles Davis
7. Build things with your hands
8. Read Books
9. Write Books
10. Paint
11. Watch Movies
12. Make your own Movies
13. Do cook
14. Start a clothing Brand
15. Do Something at night and weekend
16. Embrace Obstacles.
17. Embrace Technology
18. Make your own blog
19. Use your own gut to make decision
20. Put yourself in your work
21. Don’t Give up
22. Be Brave

from www.hankyung.com/community/jaehang

Visit Korea Folk Village

2007-08-28T08:00:00.000-07:00

Yes, I am. Self-Photo and Self-Shot.

I've visited Korea Flok Village which is located in YongIn City. I've never been there since Seventeen years old. After long time, I was there with my K100D. K100D was in front of me and took a picture of me. Thanks K100D~

A few days ago, I've adopted new FA 50.4 lens. He had wide angle and pretty bright lens. I am so satisfied with him. However, this photo did not took a picture with FA 50.4 lens. This lens is Sigma 28-200. So-called hungry lens.(I am not sure this expression is konglish or not) When I went that place, Korea history drama was making a film of scene and I was trying to enter the spot, but I couldn't go for it. They didn't like my being. ANYWAY, It was very fun experience.

My Best Friends

2007-08-23T06:15:00.000-07:00

Here are my best friends and their girl friend and wife.

This photo has taken at the SinSu and SeoungEun Wedding. The front row is Sinsu's family and back row is DoUn's couple. I always feel sorry to be with them much times. DoUn's couple is supposed to get marry in December. Congratulation first.

The control of mind

2007-08-23T01:17:00.001-07:00

1. We have to empty our mind of all corruptions
2. We should fill our mind with good things.
3. We should have a humble mind.
4. We should widen our heart.
5. We should train our heart in good thinking

I have a dream

2007-07-23T02:02:00.000-07:00

I say to you today, my friends, that in spite of the difficulties and frustrations of the moment I still have a dream. It is a dream deeply rooted in the American dream. I have a dream that one day this nation will rise up and live out the true meaning of its creed: “We hold these truths to be self-evident; that all men are created equal.” I have a dream that my four little children will one day live in a nation where they will not be judged by the color of their skin but by the content of their character.

-Martin Luther King Jr., pastor-