Sundar Pichai, Senior Vice President Android, Chrome and Apps at Google presented the Keynote at Google I/O, 2014. Perhaps the most important piece of information included in Mr. Pichai’s remarks amounted to an enormous increase in what he referred to as “momentum in mobile”, which, he claims, is now propelled by over 1 billion active (30 day active) Android O/S users. In turn, the rate at which this momentum has been building over the last 3 years amounts to doubling, each year. Regardless of one’s opinion of the business value of the mobile market segment connected via this operating system, simply the size of it points to inescapable opportunity, for someone, at some point in time.
As would befit an executive at an online advertising business, Mr. Pichai followed up on this announcement of enormous growth, with some related announcements depicting the absolutely enormous extent of opportunity for advertising represented by recurring points of human engagement with this mobile technology:
- 20 Billion Daily Text Messages
- 93 Million selfies taken each day via Android mobile devices
- an estimated 100 Billion daily checks, by humans, on these devices
Three themes were woven throughout the opening of the Keynote:
- Perhaps no other mobile O/S has done more to develop a truly global market than Android. Mr. Pichai’s opened with references to international locations where developers unable to travel to the event were gathered, locally, to attended it. Then, later in his remarks, he made reference to apps built by Android ISVs performing “mission-critical” roles in developing markets; for example, a money transfer and “Micro-financing” App for consumers located in Kenya. Mr. Pichai claimed “40% of Kenya’s GDP” actually flows through this App
- Android ISVs are, perhaps, best positioned to capitalize on the opportunity, near term, represented by the enormous growth in the horizontal reach of the global Android mobile user market. While this writer maintains a skeptical position on Google’s ability to monetize the market potential via online advertising methods, he doesn’t dispute the substantial worth of the same market for ISVs, who are, by no means, constrained to simply offering promotional systems to these consumers.
- But the great majority of all transactions (the writer is hedging here, as the Amazon and Microsoft Android implementations do not appear to support App transactions through Google’s Play Store) for these Android Apps will flow through Google Play. Anyone following Google will want to factor in some estimate of positive impact on their bottom line
Where can readers obtain more opinion on the impact these statistics and themes may have on Google’s own performance? Some early commentary on the event highlighted point 2) and 3), above. Readers interested in this point should take a look at ‘Play” has much in store.
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