There’s a difference between being a shareholder and a supplier. And Android app developers are going to get another lesson about it soon.
Yes, Google is trying to revive revenues — most recently by introducing search ads in its Google Play store.
It’s a Google effort to seek out more moolah, but many smaller app developers will take the hit. Android developers are already smarting from the fact that they make less dough, for the most part, than their iOS counterparts.
“The prospect of a further slice taken from their piece of the (Android) pie objectively isn’t great news,” notes Business Insider. “Of course, not all developers will have to opt into that estimated 20 percent cut by buying search ads. And, for some, the revenue cut will be worth the additional downloads its app gets.”
This is, to be honest, another Google adjustment designed to improve mobile monetization at the company.
The bigger, more cash-rich developers will survive it. The fledgling developers?
“For people like us, it’s not very good,” said Cameron Banga, co-founder of app development company 9Magnets in an interview with Business Insider. “We’re small. Most of our clients aren’t going to have the budget to compete with the people who are at the top. They’re already facing an uphill battle, and this is just going to be just one more step that’s going to be really hard to overcome without tons of capital.”
We think this is a tightrope that’s hard for Google to walk. Yes, Google needs to monetize and make up for some of the losses it’s feeling in mobile search and other advertising, but it’s setting the stage for a declining cadre of Android-committed developers who can help the company battle Apple’s App Store.
We also think we’re glad we don’t have to make these choices.
However, there is an old adage that comes to mind: “Be careful who you step on on the way up the ladder — because you’re going to see them again on the way down.” And they might be some angry birds, indeed.