Apple's 'iAd' Mobile Advertising Platform Set for Introduction Tomorrow as Google Sweats AdMob Purchase Approval?

[MacRumors]

MediaMemo reports on an interesting confluence of events involving the mobile advertising industry, noting how Apple's media event tomorrow could help Google in its bid to gain regulatory approval for its acquisition of AdMob.

Late last month, a report surfaced claiming that Apple was set to introduce a mobile advertising system dubbed "iAd" on April 7th, which is today. With Monday's announcement of an iPhone OS 4.0 media event scheduled for tomorrow, rumors from MediaMemo's sources and others have unsurprisingly shifted the iAd introduction to that date.

Apple is likely to introduce its mobile ad platform Thursday at its iPhone developer event, say sources familiar with the company's plans.

Apple's iAd platform is expected to be based on its January acquisition of ad firm Quattro Wireless. That purchase came relatively soon after Google's announcement that it had agreed to purchase AdMob, which Apple had also reportedly considered purchasing.

Insiders have reported that Google's pursuit of AdMob was primarily a ploy to keep the ad company out of Apple's hands, with Google offering a 25% premium over Apple's offer in order to seal the deal. While the technique succeeded and Apple was forced to move on to Quattro in its bid to snap up a major mobile advertising industry player, Google's AdMob acquisition has been held up by regulatory scrutiny from the U.S. Federal Trade Commission (FTC), and a Wall Street Journal report (subscription required) today indicates that the FTC is gearing up to formally oppose the acquisition on antitrust grounds.

As a result of the FTC's scrutiny of the Google-AdMob deal, Google has reportedly been playing up Apple's moves in the mobile advertising space in hopes of convincing regulators that healthy competition will continue to exist in the marketplace even if the acquisition is approved. MediaMemo notes:

Last month, when MediaPost wrote a story speculating about Apple's mobile ad plans -- the publication dubbed the platform "iAd," but I'm not sure that Apple intends to go with that name -- Google sent reporters an email link to the story. "If true, it would be more evidence of how competitive and quickly-evolving the mobile ad space is," wrote Adam Kovacevich, a manager at the company's public affairs group.

Consequently, an "iAd" introduction by Apple tomorrow could be a significant weapon for Google to have in its arsenal as it continues to seek approval for its deal with AdMob.

Article Link: Apple's 'iAd' Mobile Advertising Platform Set for Introduction Tomorrow as Google Sweats AdMob Purchase Approval?

 

[Meduolis]

Don't care who made it if I see "ad" it's bad and I hate it.

 

[VicMacs]

If only

That's gonna be great once apple buys google!

From my iPad!

 

[Robert M.]

Are they trying to put ads on the iPhone? If so, then why? 😕

This whole thing confuses me....

 

[the vj]

What iAd is about in the first place?

 

[Otaviano]

Are they trying to put ads on the iPhone? If so, then why? 😕

This whole thing confuses me....

I suspect they are developing a mobile ad platform that will be open to application developers. So the people releasing free applications will be able to better ads that are localized. They add an extra incentive to developers, taking a small cut I'm sure, and give Google a slap in the face for having stepped into their territory.

 

[Winni]

Are they trying to put ads on the iPhone? If so, then why? 😕

It's a long shot, but my guess is that they want to make more money... 🙄

 

[rwilliams]

Are they trying to put ads on the iPhone? If so, then why? 😕

This whole thing confuses me....

Many free apps in the App Store have ads in them to cover the cost of offering a free app. I would imagine that Apple's ad scheme would allow developers to replace the currently tacky ads in those apps with something less obtrusive and more stylish. Right now, most ads appear just slapped onto the screen.

 

[rxden]

ok this whole ad thing is really dumb does any end consumer care - why all the press

ok this whole ad thing is really dumb does any end consumer care - why all the press

 

[Winni]

... and give Google a slap in the face for having stepped into their territory.

In case you don't know it: Apple didn't invent the "smartphone", so it's hardly "their territory".

 

[sonicboom]

In case you don't know it: Apple didn't invent the "smartphone".

Really?
You could have fooled me.

 

[niuniu]

The future of e-consumption is easy on your pocket, and hard on your eyes 😎

 

[Friscohoya]

Sucks for admobile shareholders. Thas what they get for being greedy though. I would have done same thing tho.

 

[Meduolis]

It's a long shot, but my guess is that they want to make more money... 🙄

Sounds like a long shot.

 

[ajhaji]

A LOT of free apps have ads in them, mostly by AdMob and Google. Apple is developing its own ad solution so that they can take some of that revenue away from Google.

The benefit to users? None. You'll continue to see ads in many free apps, but they'll have a tiny Apple logo on them rather than an "AdMob" or "Google" label.

Benefit to the developers? They have more options to monetize their free apps. You might even see a war between Apple and Google over who deals out the highest ad revenue.

But, we as users have to get used to the fact that developers aren't doing this for fun. They need to earn a living, too--and that's where ads come in. Ad doesn't always equal bad.

 

[*LTD*]

If Apple pulls it off right, like they do with nearly everything else, it could work.

 

[Rocketman]

There is an element of analysis of "comparative advantage" the FTC considers, but the primary issue is if one company (or person) has an absolute advantage. Microsoft for example had an over 90% market share for OS's and something over 70% of browser penetration at one point.

Google has a "very large" market share, and the admob acquisition is as much analytics as it is advertising targeting, which means Google will not only have a clearly dominant market share for online advertising in a wide range of categories, and a deep advantage in search, but now will have inside information about everybody's performance and results, which it is under no obligation to disclose or sell, now that it owns the company.

The "tactic" of "overpaying", and "rushing in" clearly means they intended to get the company before a perceived competitor., so besides whatever effect it has, it shows motive and tactics.

If Google gets this transaction approved without some sort of limitations, I will be surprised. Except everything government does, and especially regulators, is political and arbitrary and has little relation to justice.

Regulators are judged by courts as having "inherent expertise", whether it is true or not, and more often than not, it's not true. Then if someone challenges a ruling in court, the standard of justice is a "presumption" the regulator was right. Can you believe it? In 2010, in a court, that is the standard of jurisprudence, and there is plenty of precedent that is nearly impossible to overcome. Let's change that by legislation first, because it applies to the NRC too!!!

Google's in, and it doesn't matter how agregious their acts were. They're friends of the President.

Rocketman

 

[Otaviano]

In case you don't know it: Apple didn't invent the "smartphone", so it's hardly "their territory".

Is it so that Apple didn't invent the smartphone? Thank god you are here to educate me, because I live under a rock. I had never even seen a phone until Steve Jobs pulled one out of his pocket.

Last I checked the CEO of Google was sitting on Apple's board of directors and pretty much took what they were doing and made a copy of it, hence stepping on their territory.

 

[Robert M.]

I suspect they are developing a mobile ad platform that will be open to application developers. So the people releasing free applications will be able to better ads that are localized. They add an extra incentive to developers, taking a small cut I'm sure, and give Google a slap in the face for having stepped into their territory.

Many free apps in the App Store have ads in them to cover the cost of offering a free app. I would imagine that Apple's ad scheme would allow developers to replace the currently tacky ads in those apps with something less obtrusive and more stylish. Right now, most ads appear just slapped onto the screen.

Thanks! I didn't think about it that way. 🙂

It's a long shot, but my guess is that they want to make more money... 🙄

😱 Apple wants to make money!!! Wow...my day is ruined by that shocking piece of info!! Haha I know their in business for profit maximization. I just wanted to know if they planned on showing me ads every time I unlock my phone. But if it's for free apps then thats fine by me... 😀

 

[sammich]

Don't care who made it if I see "ad" it's bad and I hate it.

Two things:

1) iPad

2) it's a typo and someone left out the "P" and someone thinks it's iPAd

 

[iDisk]

1 Day left till we know for sure.

 

[hagjohn]

I do not want to see ads on my mobile devices.

 

[BruiserBear]

ok this whole ad thing is really dumb does any end consumer care - why all the press

You might want to consider that not everyone that frequents sites like this is a PURE consumer of Apple products. Apple investors would be VERY interested in news like this. If this Ad business grows into something big for Apple it would mean their stock price going a lot higher.

 

[talkingfuture]

I had a crazy theory a few weeks ago that all this 'fighting' between Apple and Google was slightly staged and that maybe they wanted to take over a few markets from both ends and squeeze out the middle. ie Phones they are both coming from different positions and the big loosers could be the others in the market rather than each other. Perhaps in advertising they reckon there is room for 2 big players.

Like I say its crazy and probably totally wrong but it bears a little thought.

 

[BigTroll]

i don't like ad mod in googles hands as it gives them the advantage of knowing what apps are run on the iphone which versions etc, giving them the advantage of knowing what to put in the android marketplace....