Google Paid 12% of its Search Revenue to Apple in 2022!

After many rumours, now it’s official: Google paid Apple $20 billion in 2022 to be the default search engine on Safari.

It represented 12% of Google’s search ads revenue! 😱

Instead of an anti-competitive agreement, it's a revenue-sharing deal.

Apple has used Google as its default search engine since 2002, initially for free. They simply wanted the best quality for their users.

However, with the rising popularity of Safari, Google could significantly boost its ad business. Therefore, it was only fair that Google shared some of its revenue with Apple, similar to how it does with YouTubers, or how Spotify does with artists.

Microsoft attempted multiple times to lure Apple away from its partnership with Google by offering up to 90% of its search ad revenue. It wasn’t enough!

As even Satya Nadella stated, being a browser's default search engine is "game changing". This is due to the URL bar that also functions as a search bar.

In practice, the default search engine has become the gateway to the internet as a whole. We typically don't bother to type out full URLs, but instead just input the website name and click on the first result.

I speculate that most people don't even realise they're using Google when they input queries in the search bar, confusing Google with the internet itself.

Not a bad position to be in! and totally worth 12% of revenue.

Much discussion surrounds the idea that new AI-based search engines are threatening Google's market share. However, a fundamental difference exists in how people use them, suggesting there is room for both.

While Google transitioned from a traditional search engine to the "gateway of the internet," AI search is a specialised tool for research and answering questions. These two can easily coexist as they serve different purposes.

Until Ai search transitions to a traditional search engine 🤣.