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15 June 2007 15:30

Daring Fireball: WWDC 2007 Keynote News

by mozkart & 1 other, 2 comments
But the primary reason is simply money. Safari is a free download, but it’s already one of Apple’s most profitable software products. It’s not widely publicized, but those integrated search bars in web browser toolbars are revenue generators. When you do a Google search from Safari’s toolbar, Google pays Apple a portion of the ad revenue from the resulting page. (Ever notice the “client=safari” string in the URL query?) The same goes for Mozilla (and, I presume, just about every other mainstream browser.) According to this report by Ryan Naraine, for example, the Mozilla Foundation earned over $50 million in search engine ad revenue in 2005, mostly from Google. My somewhat-informed understanding is that Apple is currently generating about $2 million per month from Safari’s Google integration. That’s $25 million per year. If Safari for Windows is even moderately successful, it’s easy to see how that might grow to $100 million per year or more. There’ve been many attempts to finance app development with advertising; what’s interesting about web browser search engine deals is that browser developers earn money – a lot of it – for ads that users were going to see anyway, just by performing the same search without the built-in integration.

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