Will Apple Kick Google’s A$$ For Mobile Ad Domination?!
I was reading Mashable this morning and came across the below. These two Juggernauts are going at it for the Mobile Ad Domination! Some interesting points made in the article below. But, for me, at the end of the day, I think we’re more likely to see apple strike a deal or make some sort of standard that requires a % of ad revenue to come their way for ads that push through their devices via other mobile ad vendors (i.e. Google-AdMob). That’s guaranteed bank for Apple…but for us advertisers…it’s more likely to be higher mobile ad pricing.
But…I’d really love to hear other thoughts too!
REDISTRIBUTED ARTICLE:
“Could Apple Actually Beat Google in Mobile Advertising?”On Thursday, Apple will unveil iPhone OS 4.0. It’s not the only thing the company is expected to reveal, though. As we wrote last week, Apple is slated to launch its iAd mobile advertising platform, based off of its acquisition of Quattro Wireless in January.
If true, the move would place Apple into direct competition with Google, whose acquisition of AdMob is still pending regulatory approval. Online advertising is Google’s bread and butter. It has millions of advertisers, endless streams of data and seasoned advertising talent at its disposal.
So does Apple, whose specialty isn’t advertising, stand a chance in a duel with the Google juggernaut? The answer is a surprising “yes,” depending on what shape iAd takes and how the iPhone vs. Android battle plays out. Apple is fighting a more experienced competitor, however.
Apple Has a Head Start
While Google may have the talent and the experience in advertising, Apple has the head start in mobile, which could make all of the difference in this battle.
While very few details have been revealed concerning iAd, there are a few assumptions we can logically make. First, it will be designed for the iPhone OS — at least initially. Second, it will incorporate features that made the App Store a smash hit, such as a 70/30 revenue split or something similar. Finally, it’ll incorporate a great deal of Quattro Wireless’s ad delivery technology.
What does that mean, though? It means that Apple has a larger user base for launching its mobile platform and has greater access to mobile advertising technology than Google. The search giant can’t utilize its AdMob acquisition yet, while Apple’s had several months to integrate Quattro’s technology into its own platform. And while Android is growing, the iPhone still has greater market share.
If and when the AdMob deal is finalized, Google will have a lot of catching up to do. It also won’t have the scale of the iPhone for its launch.
How Will Google Counter?
Google threw the first punch by acquiring AdMob, but now Apple has thrown a nasty left hook and an uppercut with its Quattro Wireless acquisition and the likely launch of iAd this Thursday. How will Google counter these blows?
First things first: Google needs to convince the FTC that its acquisition of AdMob isn’t anti-competitive. The result of the FTC’s review is anybody’s guess.
Second, Google needs to move quickly to create an advertising platform for apps based off of AdMob’s technology.
Finally, Google needs to use both its technology and AdMob’s technology to create a stronger web-based advertising platform. Whoever gets ad optimization for iPhone, iPad and Android right is going to be in a far better position than its competitor.
Google’s greatest advantage against Apple is that it has more relationships and experience with web-based advertising, and it already has the technology to back it up (in fact, AdSense has been mobile for years). It’s unclear how aggressive Apple’s iAd platform will be, but my bet is that it doesn’t really focus on web-based advertising, at least initially.
So, Can Apple Win? Absolutely. But Will It?
If tomorrow Apple launched an ad platform for iPhone and Google launched a comparable one for Android, Apple would win simply because it has a larger base of iPhone and iPad users to advertise against, making it more enticing to developers and advertisers alike. That advantage cannot be understated.
That doesn’t mean Apple will win, nor does it mean that there isn’t room for two dominant mobile ad platforms. Google is not going to give up the next advertising frontier without a fight and it has the resources to turn it into a long-lasting slug fest. And, with Android’s rapid growth, it may not be that long until Apple’s market share advantage is minimized.
In the end, I think you’re going to see two dominant mobile ad platforms, one around the iPhone and one around the Android. However, the key to this battle will depend upon each company’s ability to expand their reach onto other platforms, like BlackBerry and Symbian, and who can expand the most effectively onto the mobile web. Unless Apple has some tricks up its sleeves, Google’s experience in advertising and its relationships with advertisers gives it an edge that even Apple’s head start doesn’t beat.
I believe that this will be one of the most interesting technology battles of 2010.