Accordingly, a Google executive said that two years after Apple removed Google Maps to use its own mapping application as the default service on the iPhone, the company has only regained 40% of the mobile traffic it once had.
Earlier this week, Google's vice president of finance, Michael Roszak, said the company was using the Apple Maps case as a "reference point" to predict what might happen if the iPhone maker replaced the default search engine on the Safari browser.
In an email from June 2020, Roszak shared data showing how Apple's switch impacted Google Maps traffic on iPhones.
“Nearly two years later, we’re only at 40% of our previous peak, and the actual number could be even lower as Apple Maps traffic has also increased over the same period,” said a Google executive.
The US Department of Justice is accusing the search giant of maintaining an illegal monopoly by paying billions of dollars to ensure its search engine is the pre-selected, or default, option on web browsers and smartphones.
Google’s biggest deal is with Apple, which makes Google’s search engine the default in exchange for a portion of the partner’s advertising revenue. However, the fee agreed between the two parties is not disclosed.
US authorities accuse Google of spending between $4 billion and $7 billion on the Safari deal in 2020. Lawyers representing Apple disputed the claim, saying it was a public estimate, not an actual figure.
Digital advertising budgets flow to Amazon
More than five years ago, Google and Meta Platforms dominated the digital advertising market, accounting for more than 50% of global revenue. But recent changes, including Apple’s privacy policy changes, have weakened these “empires” and created an opportunity for Amazon to rise.
Jerry Dischler, Google’s vice president of product advertising, said they were losing ground “to newcomers like TikTok and Amazon.” The parent company, Alphabet, now has nearly 5 million marketers, compared with 10 million active on Meta. Retail marketing accounts account for 35% of search advertising, the company’s largest marketing category.
Many consumer goods manufacturers have threatened to shift their entire advertising budgets from Google to Amazon, the executive said, because the e-commerce company has the ability to “collect data better than us, which will lead to better marketing results.” Dischler acknowledged that Amazon has surpassed Google in the retail marketing field, with a growth rate of 2 times.
(According to Bloomberg)
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