App Store search advertising potential is huge: annual revenue or over 1 billion dollars

In view of the huge market demand, Google and Apple could generate an additional more than 1 billion dollars a year if they were able to carry out paid search operations in their respective app stores, according to BusinessInsider, an American technology blogger.　　Bill Gurley, a venture capitalist, wrote an excellent Bill Gourly, exploring the transition from a desktop platform to a mobile platform, and the impact of this trend on startups.　　In this article, he made an interesting point about Google and Apple's App Store: The two companies missed the opportunity to make money in the App store with paid search. "User access technology is changing. Startups like the traditional browser-centric access technology, such as SEO (Search engine Optimization) and SEM (search engine marketing), but the mobile apps world is different. Worse still, there is no systematic user acquisition pattern in the mobile arena.　　Pre-installed protocols seem to be doing well on Android (which has previously been popular with feature handsets), but the model is immature. What is even more surprising is that neither Apple nor Google has conducted SEM promotions outside the App Store's classification model (though it seems to have become commonplace in China). This will miss a huge opportunity for the two platform providers. And for those who are willing to spend money to get users, there is also a loss of an important resource-as we all know, such enterprises are not a minority. "Gourlay suggested that Google and Apple offer a paid search list feature in the App Store.　　Just as Google puts ads on top of web search results, developers can also buy ads in App Store search results.　　While Apple needs to do a little bit of advertising technology, it can earn billions of of dollars in profits, as many companies are willing to pay for ads in the App Store search results. But it is not without reason that Apple has been slow to launch the service. The company hopes to create a fair arena for all applications, allowing independent developers to compete with big businesses.　　If the introduction of advertising business, will be beneficial to large enterprises, resulting in the application of independent developers at a greater disadvantage. This worry does make sense, but Apple has a lot of smart people who can figure out a way to solve the problem.　　They can limit the advertising bits of each keyword to one or two to avoid overly crowding out applications that are seen through natural search.　　BusinessInsider's research agency, BI FDI, estimates that the annual revenue from Apple's app Store's 2012-year paid search ads could reach between 713 million and 1.3 billion dollars. From Google's point of view, there is no need to adjust how much technology, because the company already has a large search advertising business. They just need to do some optimization for Google Play. Google may have similar concerns, but now that it has a search advertising business,This may not be a big concern. For some developers, paid search advertising is not much of a benefit. But for many developers, this is indeed a boon. The APP store has poor search capabilities and developers have long complained. Paid search ads ensure that developers present their applications to users.　　This can be an extra cost, but given the total number of apps in the App store up to 1 million, the cost is worth it. Any extra revenue will be positive as Apple's performance slows. Google is not using the Android platform to get too much revenue, but paid search can change that. (Si yuan)