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095205-idc_2010_mobile_ad_share.jpg


Chart from Fortune
Bloomberg Businessweek reports on data from research firm IDC showing that Apple's iAd mobile advertising platform, launched on July 1st, appears set to grab 21% of the mobile advertising market by the end of the year, tying Google for the top spot in the industry.
Apple will end the year with 21 percent of the market, according to estimates provided to Businessweek.com by researcher IDC. Google's share will drop to 21 percent, from 27 percent last year, when combined with results from AdMob, the ad network it bought in May. Microsoft will drop to 7 percent, from 10 percent.
According to Apple spokeswoman Natalie Kerris, the number of advertisers committed to running iAd campaigns has doubled since June, when Apple officially announced the launch of the program with 17 companies on-board for $60 million in spending for the second half of 2010.

At the time, Apple CEO Steve Jobs noted that the financial commitment was equivalent to 50% of the predicted overall advertising budget for the entire mobile industry over that time frame. It appears, however, that the mobile advertising industry is exploding even faster than projections had indicated, with IDC's forecast of almost $500 million in spending suggesting that even those companies losing market share are seeing strong revenue growth.
Google's mobile-ad sales are experiencing fast growth, said Jason Spero, director of mobile for the Americas at Mountain View (Calif.)-based Google. The company doesn't break out full-year mobile ad sales. Nor do other mobile ad networks.

"If we are losing share, this market is growing faster than any one we've seen," Spero says in an interview. Google has increased its investments in mobile advertising and AdMob will launch new features in 2011, he said.
The report also notes that a number of strong players are staking out their territory in the burgeoning mobile ad market, from startups Jumptap (13%) and Millennial Media (11%) to established companies like Sony Ericsson, which has launched its own network, and Research in Motion, which is reportedly looking to acquire one of its own.

Article Link: iAd Predicted to Match Google's Share of Mobile Ad Market by Year's End
 
I'll take iAd over anything else for marketing distribution. Because there's a standard to it, it wont take focus away from the app. I pretty much know I won't get annoyed by it.
 
Just yet another revenue stream for Apple. They have so many different streams of money coming in from so many different sources, they should be more than flush for a looooong time.

And that's good for us in that it guarantees they will have the resources to continue developing new products.
 
Funny how things change

Wasn't it just a week or two ago when Yahoo CEO was quoted saying that Apple iAd was going to fail because it was a "closed system?" Now with Yahoo having 9% of the mobile ad business and Apple having 21%, which one looks as if they are about to fail?
 
I actually rather like iAds. The ads are often interesting, and worth checking out.

I have already downloaded a couple of apps that I discovered through iAds (Vevo was one of them, and its really good), and bought something based on a coupon I got on one iAd.
 
Amazing. For whatever reason, I thought iAd was going to be a dud and yet they're right there, neck-and-neck with the presumed leader.

I wonder if people at Google are still feeling as cocky as they were a few months ago about taking Apple on when Android was finally catching up with the iPhone. I doubt their profit from Android is going to offset losing such a large chunk of the mobile advertising market. And to think, if they'd avoided going after Apple in that way, they likely could have been in a tight partnership with Apple for iPhone ad delivery.

Hard not to think some people at Google are re-examining the wisdom of their mobile strategy at this point.
 
Gotta love mobile ads... I love my (**** expensive) phone providing me with free apps, and showing me all those cute little ads poping up from everywhere when expecting them less... I actually love so much to see that all those ads-disturbing-me-to-do-whatever-I'm-doing-on-my-mobile-device market is skyrocketing. :rolleyes:

PS: based on the provided chart, my next smartphone will be a Nokia ;)
 
I wonder if people at Google are still feeling as cocky as they were a few months ago about taking Apple on when Android was finally catching up with the iPhone. I doubt their profit from Android is going to offset losing such a large chunk of the mobile advertising market.

I'm still unclear as to whether or not Google profits from Android at all. I was under the impression that it was free for the taking by any manufacturer that wanted to make use of it. If that is truly the case, then Google itself is failing miserably in the mobile space. Some handset makers that use it's software are profiting, however.

Google's bread and butter is advertising. Sure, Android is free for any manufacturer that wants it - because Google's end-game is for it to become an advertising platform! Android itself is Google's "iAd".
 
Google's losing bet on Android

A lot of companies have been turning Android against Google lately, between Bing only Android phones in the US and Baidu only Android phones in China, and now Facebook's phone based on Android source, this can't be what Google was hoping for.

Meanwhile in an iPhone only (no Android) universe, Google had 100% of the iPhone based web searches, not to mention no competition from Apple in mobile advertising and a seat on Apple's board. And bonus, the mobile carriers were on their way to becoming dumb pipes -- a trend Android is reversing.

Tell me again how Google is better off now than it would have been without Android?
 
Wasn't it just a week or two ago when Yahoo CEO was quoted saying that Apple iAd was going to fail because it was a "closed system?" Now with Yahoo having 9% of the mobile ad business and Apple having 21%, which one looks as if they are about to fail?

Yeah, I laughed then too. It looks like advertisers prefer to spend money on advertisements that actually work. From what I understand, most people spending money on iAds are getting decent return on their investment (although I can't say I fully understand all their metrics). Apparently advertisers feel like they are paying a little more, and have a little less "control" over the ad (there's nothing like a popunder on an iAd), but the ads actually work.

Yahoo's CEO apparently hasn't quite grasped that concept.
 
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blackpond said:
I wonder if people at Google are still feeling as cocky as they were a few months ago about taking Apple on when Android was finally catching up with the iPhone. I doubt their profit from Android is going to offset losing such a large chunk of the mobile advertising market.

I'm still unclear as to whether or not Google profits from Android at all. I was under the impression that it was free for the taking by any manufacturer that wanted to make use of it. If that is truly the case, then Google itself is failing miserably in the mobile space. Some handset makers that use it's software are profiting, however.

Google's bread and butter is advertising. Sure, Android is free for any manufacturer that wants it - because Google's end-game is for it to become an advertising platform! Android itself is Google's "iAd".

Google does deals with manufacturers to include the nonfree Google apps with Android (Google Mail, Android Market, Google Maps, Google Navigation etc).

Any phone that includes these apps involves some kind of payment to Google and all Android phones I've seen include these apps.

Edit: More info Link
With a high-quality open platform in hand, we then returned to our goal of making our services available on users' phones. That's why we developed Android apps for many of our services like YouTube, Gmail, Google Voice, and so on. These apps are Google's way of benefiting from Android in the same way that any other developer can, but the apps are not part of the Android platform itself. We make some of these apps available to users of any Android-powered device via Android Market, and others are pre-installed on some phones through business deals. Either way, these apps aren't open source, and that's why they aren't included in the Android source code repository. Unauthorized distribution of this software harms us just like it would any other business, even if it's done with the best of intentions.
 
It's obviously too early in the game to determine how all this will turn out, but it certainly is a powerful statement about where the media industry is heading. Once again, Steve Jobs seems to have been able to predict the future of technology. I wouldn't be surprised if Apple TV is now growing into more than a hobby. With high-quality streaming becoming a reality and AirPlay for sharing content, it looks like TV will be the next medium that Apple will upend.
 
Besides the ones shown by Steve himself in the iAd presentation I´ve yet to see a live one out there. Can someone point me to an app with iAds please?

iAds are U.S./ U.K. only at the moment.

arn
 
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