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So Facebook generates no revenue as well since it's just their ads that do? In both cases the platform (Android/Facebook) is the vehicle, whose sole purpose is

So Facebook generates no revenue as well since it's just their ads that do? In both cases the platform (Android/Facebook) is the vehicle, whose sole purpose is to generate revenue, so I think it is safe to say that that vehicle is directly responsible for the revenue.

dekhn 11y ago
The Facebook social media desktop and web applications don't directly make money (unless there is some enterprise hosted version of Facebook). So, sure, it's the Facebook Ads product that makes the money.
- darkstar999 11y ago
  That's like saying a magazine doesn't generate revenue, the ads do. It doesn't really make sense. The ads won't exist without the platform, therefore the platform generates revenue.
  - gwright 11y ago
    Except that if Android didn't exist, those users would be using another phone that was serving Google ads (as opposed to not having a phone). A better analogy might be television. If a company such as GE produced TVs and also owned a television network (NBC), then selling TVs so people could watch NBC would generate ad revenue but if someone replaces their GE television with a Sony TV, NBC still makes money selling advertisements. I'm not sure I would describe the television equipment business as the entity generating revenue. In the Google ad world, it is the ad-network that is generating the revenue, not the phones/tablets/computers that are rendering the ads. That isn't to say that Google isn't getting revenue from Android, just that it would be odd to attribute the ad-revenue to the device business.
    - dogma1138 11y ago
      No they would be using a phone that serves some ads. Google makes money directly from Google play and from having Google Ads as an integrated part of the platform this is a big big difference. If Google didn't had android they could not access the same revenue stream if there was an alternative OS the only thing they could do is either generate revenue via regular browsing. Your TV analogy is incorrect because in your case these ads are platform agnostic, a correct analogy would be GE selling smart TV's that allow NBC to display ads outside of it's regular TV broadcasting (which anyone who owns an LG TV knows just how annoying the fuck it is) in this case this capability is platform specific meaning NBC can only display these types of ads on GE smart TV's if some one has a Sony TV NBC can't display these ads hence NBC can't make money on selling those specific advertisements.
      - 5ersi 11y ago
        Google Ads are not an integrated part of any Android OS. Google Play Store is available on most western Android phones but is not part of an OS - see Amazon Kindle and most Chinese phones. Google ads are delivered either via web pages or as ads in apps. In both cases the owner of the page/app decides which ad network they'll use. There is plenty of competition in ads space. The situation is the same on iOS, where Google has no leverage, yet they have the same revenue stream from ads. The only advantage Google has is the default search engine setting on official Google Android phones. SO you
  - scottm30 11y ago
    The magazine analogy doesn't work though, unless you are referring to a free magazine. The magazine generates revenue through sales of the magazine and advertising within the magazine. Whereas platforms provide users with free services that are supported by ads.
  - tuananh 11y ago
    unless you're talking about free magazine. without ads, magazine will be just fine. people still pay for that.
  - dekhn 11y ago
    Note that those ads can be served on any number of platforms, so the platform itself just drives traffic to the ads. The magazine drives traffic to the ads. The website drives traffic to the ads. The ads make the money. The platform is the magnet that drives traffic.

dekhn 11y ago

The Facebook social media desktop and web applications don't directly make money (unless there is some enterprise hosted version of Facebook). So, sure, it's the Facebook Ads product that makes the money.

darkstar999 11y ago
That's like saying a magazine doesn't generate revenue, the ads do. It doesn't really make sense. The ads won't exist without the platform, therefore the platform generates revenue.
- gwright 11y ago
  Except that if Android didn't exist, those users would be using another phone that was serving Google ads (as opposed to not having a phone). A better analogy might be television. If a company such as GE produced TVs and also owned a television network (NBC), then selling TVs so people could watch NBC would generate ad revenue but if someone replaces their GE television with a Sony TV, NBC still makes money selling advertisements. I'm not sure I would describe the television equipment business as the entity generating revenue. In the Google ad world, it is the ad-network that is generating the revenue, not the phones/tablets/computers that are rendering the ads. That isn't to say that Google isn't getting revenue from Android, just that it would be odd to attribute the ad-revenue to the device business.
  - dogma1138 11y ago
    No they would be using a phone that serves some ads. Google makes money directly from Google play and from having Google Ads as an integrated part of the platform this is a big big difference. If Google didn't had android they could not access the same revenue stream if there was an alternative OS the only thing they could do is either generate revenue via regular browsing. Your TV analogy is incorrect because in your case these ads are platform agnostic, a correct analogy would be GE selling smart TV's that allow NBC to display ads outside of it's regular TV broadcasting (which anyone who owns an LG TV knows just how annoying the fuck it is) in this case this capability is platform specific meaning NBC can only display these types of ads on GE smart TV's if some one has a Sony TV NBC can't display these ads hence NBC can't make money on selling those specific advertisements.
    - 5ersi 11y ago
      Google Ads are not an integrated part of any Android OS. Google Play Store is available on most western Android phones but is not part of an OS - see Amazon Kindle and most Chinese phones. Google ads are delivered either via web pages or as ads in apps. In both cases the owner of the page/app decides which ad network they'll use. There is plenty of competition in ads space. The situation is the same on iOS, where Google has no leverage, yet they have the same revenue stream from ads. The only advantage Google has is the default search engine setting on official Google Android phones. SO you
- scottm30 11y ago
  The magazine analogy doesn't work though, unless you are referring to a free magazine. The magazine generates revenue through sales of the magazine and advertising within the magazine. Whereas platforms provide users with free services that are supported by ads.
- tuananh 11y ago
  unless you're talking about free magazine. without ads, magazine will be just fine. people still pay for that.
- dekhn 11y ago
  Note that those ads can be served on any number of platforms, so the platform itself just drives traffic to the ads. The magazine drives traffic to the ads. The website drives traffic to the ads. The ads make the money. The platform is the magnet that drives traffic.