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Google reportedly pays Apple $ 15B to remain the default search engine

Google reportedly pays Apple $ 15B to remain the default search engine

Financial analysts estimate that Google is paying Apple $ 15 billion to remain the default search provider in the Safari browser.

It is known that Google pays a significant amount for its default search position in Safari, but that number is said to reach even greater heights this year.

Google paid Apple $ 10 billion for the default search position in 2020. According to an investor note, analysts believe the number will increase by 50% by 2021.

Apple blog Ped30.com received a copy of the note that reads:

“We now estimate that Google’s payments to AAPL to be the default search engine on iOS were ~ $ 10B in FY 20, higher than our previously announced model estimate of $ 8B. Recent information in Apple’s public applications as well as a bottom-up analysis of Google’s TAC payments (traffic costs) pay us each for this figure …

We now predict that Google’s payments to Apple could be nearly $ 15 billion in fiscal year 21, contributing an impressive ~ 850 bps to services growth this year and accounting for ~ 9% of the company’s gross profit. ”

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It is believed that Apple will pay this amount to ensure that it is not outbid by Microsoft.

The investor note further says that payments may approach $ 18- $ 20B in 2022.

While the increase in payouts is remarkable in itself, it’s also good for SEOs to know that Google’s search volume is not likely to be majorly disrupted in the coming years.

That would almost certainly be the case if Google lost its position as the default search provider for Safari.

In the US, Safari currently owns 53% of the mobile browser market share and 18% of the desktop browser market share.

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Yes, users can choose the provider they want as their default search engine, but the potential for lost search volume is huge.

However, do not worry as it looks like Google and Apple will not break up soon.

Source: Ped30

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