iAd taking the market by storm, has competitors shaking in their boots

Apple’s release of the iAd advertising solution with iOS 4 was bound to shake things up in the mobile advertising industry. According to Bloomberg, it absolutely did. The new numbers show all the big players in the ad business scrambling to stop the hemorrhaging of their mobile ad market share to the new player in town, while Apple is seeing a jump to 21 percent of the market by the end of the year. Interestingly enough, in the industry that Google used to dominate, Apple isn’t the only threat. Small ad companies like Jumptap and Millennial Media are quickly gaining ground in the market, and are swiftly becoming key competitors.

Apple’s announcement of iAd brought on a flurry of upgrades and acquisitions, like Google’s AdMob purchase. In keeping up with the competition, these companies may have stemmed the negative of flow of market share to a point, but it only served to slow the ascent of iAd into the mobile ad fray. Google is down to 21 percent from 27 percent last year. Microsoft dropped from 10 percent to seven. Now, it’s really only a question of how fast iAd will grow going forward. Striking ad deals with companies like Best Buy, Unilever, and DirectTV will definitely go a long way in entrenching iAd in the top few spots in the leaderboard, but in this field, swift innovation and upgrades are keys to success.

Apple isn’t the only new contender either. Ericsson has announced its own ad network, called Admarket, and RIM is rumored to be purchasing an as of yet unnamed ad network. According to Karsten Weide, an analyst at IDC, "It's not going to be a two-horse race. The race by no means is over."

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Companies are only scared because they know only idiots buy crap from Apple. Honestly, I'm surprised people actually buy iphones, pods, and everything else when they don't have a good life expectancy.

I have to agree. From the video i've seen during the keynote, iAd is ads done right. I was really impressed, and I even hate ads.

A new ad service is getting positive reviews? You've got to be kidding. Too bad there's no Ad Muncher for Apple mobile devices.

Educated Idiot said,
A new ad service is getting positive reviews? You've got to be kidding. Too bad there's no Ad Muncher for Apple mobile devices.
Ever used an iAd? It's pretty different from (and way better than) a typical ad experience. Users respond well to it because of that. Imagine that.

Am i the only one who laughs when Apple calls something "magical" or "revolutionary"? Yeah, it's a nice product but i think magic and revolutionary are a LITTLE overboard.

An unbelievably beautiful and intuitive service for our magical and revolutionary devices
"unbelievably", "beautiful", "magical", "revolutionary" - 60% of words in the sentence just to keep RDF field strong. Apple probably could make rape look good too.

So with the Apple's dominance in the mobile space (phones and music players) and now their own closed iAD service for those devices, aren't they walking a fine line of someone hitting them with legal action?

That isn't a Apple sucks type question, no favoritism or anything involved. Just a purely legal question of where Apple is and where they appear to be headed.

zeke009 said,
So with the Apple's dominance in the mobile space (phones and music players) and now their own closed iAD service for those devices, aren't they walking a fine line of someone hitting them with legal action?

That isn't a Apple sucks type question, no favoritism or anything involved. Just a purely legal question of where Apple is and where they appear to be headed.

Maybe, but what would need to happen is each different phone is opened to all competitiors.
Elliot has said ios is open to google ads, I have no idea if thats true or not

evo_spook said,
Elliot has said ios is open to google ads, I have no idea if thats true or not
There was a point lately where it was in question whether or not AdMob was allowed on iOS, but after the recent "opening up" of the App Store, we're certain that they're accepted.

Hmm is it me, or do ads on mobile OS'es just annoy the eFF out of you? I have only seen a few but I will NEVER click on them.

rrode74 said,
Hmm is it me, or do ads on mobile OS'es just annoy the eFF out of you? I have only seen a few but I will NEVER click on them.
It's not just you.

rrode74 said,
Hmm is it me, or do ads on mobile OS'es just annoy the eFF out of you? I have only seen a few but I will NEVER click on them.

There just isn't much screen real estate for an advert. They often take up at least 15% of the screen. If a web page was 15% adverts, it would "eFF" out of me too.

I say BLAH to all ads in apps. However, I don't mind the apps that offer two version Free w/ ads, or a few bucks w/o ads.

I haven't come across any iAds yet... i've seen a few apps with admob.

Shadrack said,
I say BLAH to all ads in apps. However, I don't mind the apps that offer two version Free w/ ads, or a few bucks w/o ads.

I haven't come across any iAds yet... i've seen a few apps with admob.

I havn't come across any paid apps that have ads

evo_spook said,

I havn't come across any paid apps that have ads

Me neither. I'm not certain of this, but I don't think Apple looks kindly upon paid apps that have ads.

Shadrack said,
I say BLAH to all ads in apps. However, I don't mind the apps that offer two version Free w/ ads, or a few bucks w/o ads.

I haven't come across any iAds yet... i've seen a few apps with admob.

I saw an iAd on the Speedtest.net mobile app. It was a very thorough ad that really launched what could be seen as the equivalent of a mini flash website about the Nissan Leaf. The nice thing is that they are not obtrusive and you can exit them at any time. I don't mind seeing them on free apps.

The article is wrong, Google's admob acquisition had nothing nothing to do with Apple entering the advertising market, Google announced they were buying Admob back in November 2009, iAds only been with us a few months.

Also iAd has a huge problem that it only works with iOS, so even if it supplied 100% of ads of iOS if would reach a concrete ceiling and stop. Admob works on any smartphone so can grow no matter what smartphone OS is doing well.

But isn't iAD limited to just iOS? So as iOS Market share is falling eventually that's gonna effect the growth of iAD too. They need to open it up to more mobile devices

Yeah, I'm lost too. Are these percentages and market share only in the iPhone/iPad/iPod universe, or does that include the overall internet?

Either way, looks like Apple and Google will become enemies sooner than later.

Elliott said,
It's referring to mobile advertising in general (mobile internet and mobile apps; platform independent).

So wouldn't that connect directly to the number of mobile devices? If there are more iPhones than other phones, iAD would grow too.

ccoltmanm said,

So wouldn't that connect directly to the number of mobile devices? If there are more iPhones than other phones, iAD would grow too.

Only if iOS developers use iAd over other services.

Since iAD is just for the iphone.. I don't see this hurting companies that have expanded far more past just 1 type of phone.... Maybe has people who want to show adds on apple phones worried, as direct competition with the actual company who controls said phone is a tough thing to beat...

Elliott said,
Mobile advertising isn't a small market and iOS is on plenty of devices.

They do, but it is still a small percentage when compared to every other mobile phone.

shakey said,

They do, but it is still a small percentage when compared to every other mobile phone.

The thing is that it's not just on phones. iAd is embedded in every iPhone, iPad, and iPod touch that is sold. So that's a huge market for premium brands. Many people say that Apple product owners have more money than sense. So why wouldn't advertisers flock to get their ads on devices owned by people that have lots of discretionary income.

not sure how that effects Google as surly iAd is only on iphone apps which google wasn't available on anyway unless I;m mistaken, was Google ads available on their?

Be more interesting when Google is available on iPhone and iAd available on Android.

evo_spook said,
Be more interesting when Google is available on iPhone and iAd available on Android.

Not sure how that will happen with Apple blocking competitive services/apps on their products.

techbeck said,

Not sure how that will happen with Apple blocking competitive services/apps on their products.

Wouldn't surprise me if iAds would be blocked on Android aswell.

evo_spook said,
not sure how that effects Google as surly iAd is only on iphone apps which google wasn't available on anyway unless I;m mistaken, was Google ads available on their?

Be more interesting when Google is available on iPhone and iAd available on Android.

AdMob (Google) has a framework for ads on iOS (and they're used in quite a few apps). iAd is just easier to incorporate and isn't nearly as annoying if a user accidentally taps one.

Elliott said,
AdMob (Google) has a framework for ads on iOS (and they're used in quite a few apps). iAd is just easier to incorporate and isn't nearly as annoying if a user accidentally taps one.

Thanks, that answers Techbeck

techbeck said,

Not sure how that will happen with Apple blocking competitive services/apps on their products.


Very true, I have wondered how long it would be until Apple starts rejecting apps that use an ad mechanism other than iAd. They openly say that apps will be rejected if they duplicate build-in functionality so that isn't a very far stretch.