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Apple's iOS beating Google's Android in mobile ads with 75% spend share

post #1 of 34
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While Android devices continue to sell in large quantities, the advertising dollars that support the platform are increasing going to Apple's iOS, which now claims a 75 percent ad spend share of the leading ad server marketplace.

mobile ad spend share by device
Source: MoPub


Mobile advertising in the first quarter outpaced the previous holiday season quarter, but the way advertisers are spending their money is favoring Apple's iOS at the expense of Google's Android, according to a report by MoPub.

Trends in mobile advertising favoring iOS



Among the trends noted by MoPub: monthly ad share grew 12.4 percent for Apple's iPhone in the quarter, and now accounts for more than half of all ad spend in its marketplace. That's more than twice the share claimed by Android smartphones.

Add in iPad and iPod touch, and Apple's iOS platform accounts for "slightly over" 75 percent of ad spend share, despite a quarterly decline among non-iPhone iOS devices.

In contrast, the report notes that "Android tablets have failed to gain traction, accounting for less than 1.0% of ad spend."

That indicates that Apple has the same roughly 75 percent "lion's share" of mobile advertising that it also has in mobile hardware profits, mobile software apps sales and mobile content downloads through iTunes.

Apple also ahead in ad, user value



MoPub identified two broad areas where Apple's platform has been outperforming Android. The first is that millions of Apple's users are connected to an iTunes or App Store account with a credit card.

Android began catching up in this area last fall with the popularity of higher-end Samsung products like the Galaxy S and Note lines, which ad buyers initially associated, MoPub reports, with "high value" users likely of possessing credit cards and "significant disposable income.""Many ad buyers discovered the increase in user value on Android devices was offset by a poor conversion rate of users from of ads."

However, during the first few months of 2013, "many ad buyers discovered the increase in user value on Android devices was offset by a poor conversion rate of users from of ads."

After an initial increase in ad spend share in February, Android has seen a decrease to levels below January. Apple's iPhone keeps edging upward in ad spend share, while the iPad and iPod touch are together larger than all Android spending combined.

Apple also ahead in rich media ads



In addition to serving a higher value audience, Apple's iOS also accounts for most "rich media advertising," which describes engaging ads that do more than just display a banner for users to click on.

Apple focused on improving the mobile ad experience in 2010 with the release of iAd, an effort to develop an engaging ad experience that wasn't annoying to users, and might instead be inviting, useful or even entertaining.



iAd uses HTML5 content that runs in a special security context to constrain malware and prevent the inadvertent opening of unanticipated vulnerabilities that has plagued interactive middleware such as Adobe Flash or Microsoft Silverlight.

While competitors launched a scoffing campaign that ridiculed Apple's iAd program and suggested that each expansion into lower tiers of advertisers with smaller budgets was actually a desperate admission of defeat, Apple has maintained its position as the third largest mobile ad network, despite being exclusive to iOS.

More good news for iAd: MoPub notes that "ad budget overwhelmingly sought out more engaging and effective ad units," with nearly 80 percent of the ad spend going into rich media ads (below).

"Rich media and iPhone were the only ad impression segments that increased ad spend share in February and March," the firm noted before adding, "However, most of the rich media ad spend share are also iPhone impressions. The inability for Android to capitalize on increased value generated by rich media exposes a major issue that will need to be addressed."

rich media ad spend share
Source: MoPub


Optimizing mobile ads



MoPub's report on its mobile ad market notes that advertisers made "significant improvements to ad spend optimization and to refine opportunistic tactics" in the quarter, resulting in "exponential payoff for this effort."

MoPub represents over 230 "tier 1 brand advertisers," including 58 of the 100 top advertisers in the United States. The firm's real-time market serves smartphone publishers in the US, Europe, Asia and Latin America.

Unlike other mobile ad networks, MoPub doesn't buy ad inventory or sell advertising. Instead, the company reports "market data from real-time bidding auctions for mobile ad impressions."
post #2 of 34

Google can't even do ads right, even with all that marketshare, and it's the only thing they care about. lol.gif

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

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There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

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post #3 of 34
Quote:
Originally Posted by Tallest Skil View Post

Google can't even do ads right, even with all that marketshare, and it's the only thing they care about. lol.gif

1) Note this article is mostly about where ads are being placed. You can still use AdMob on the iPhone, right?

2) This is only one source so be wary of taking it as a blanket statement. That said, this all seems reasonable considering the iPhone's presence in other stats compared to the competition.

3) This indicates that Apple's iOS platforms isn't crashing and burning as some here are stating despite no evidence to support it.

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post #4 of 34

But, but, but - Eric Schmidt told me Android is winning.

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post #5 of 34
I hope fair justice of its success will come to AAPL.
post #6 of 34
Quote:
Originally Posted by Tallest Skil View Post

Google can't even do ads right, even with all that marketshare, and it's the only thing they care about. lol.gif

 

Quote:
Originally Posted by EricTheHalfBee View Post

But, but, but - Eric Schmidt told me Android is winning.

 

Did both of you fail to notice that that this article never mentions where that ad money was actually spent? Android has 25%, which is guaranteed to be 25% that is NOT going to Apple. That leaves the other 75% of mobile ad spending. Do you honestly think iAds is getting 75% of all mobile ad spending? If so, you're delusional (especially since the article states they're still third in mobile advertising). The fact is Google doesn't really care which platform advertisers target as long as the give their money to Google.

post #7 of 34

It's because Apple users have more purchasing power than android users. Lots of them bought android because it's cheaper.

 

Those techie/geeks who are louder that android is great and all are cheapskates.

post #8 of 34
Watching that video of the late SJ it is amazing how iAds is really a much better experience.To this day still, when I see an iAd banner, I'm interested in clicking on it to see what they have done vs the other ads that I either couldn't care less about, or delete the free app because the ads are annoying.
post #9 of 34
Originally Posted by AppleInsider View Post

...  advertising dollars that support the platform are increasing going to Apple's iOS, which now claims a 75 percent ad spend share of the leading ad server marketplace.

 

Winning.

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post #10 of 34

I'm yet to see a single iAd. 

post #11 of 34
Quote:
Originally Posted by caliminius View Post

 

 

Did both of you fail to notice that that this article never mentions where that ad money was actually spent? Android has 25%, which is guaranteed to be 25% that is NOT going to Apple. That leaves the other 75% of mobile ad spending. Do you honestly think iAds is getting 75% of all mobile ad spending? If so, you're delusional (especially since the article states they're still third in mobile advertising). The fact is Google doesn't really care which platform advertisers target as long as the give their money to Google.

 

Quote:
Originally Posted by AdeFowler View Post

I'm yet to see a single iAd. 

 

Both of you don't get it. It's not about whether the money goes to Apple or iAd. It's about the fact that iOS devices are a better way for companies to spend their $$$ if they want to effectively reach customers.

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post #12 of 34
Quote:
Originally Posted by EricTheHalfBee View Post

But, but, but - Eric Schmidt told me Android is winning.

 

Android may be winning by some metric (worldwide market share?), but Android developers are certainly not winning: you can't make money selling Android apps, and, apparently, there's not much ad money to garner either.

post #13 of 34

FYI.

 

2010: iOS App Store has 20 times the revenue of Google's Android app store:

http://techcrunch.com/2011/02/21/861-5-percent-growth-android-puny/

 

Nov. 2011: iOS App Store has more than six times the revenue of Google's Android app store:

http://www.wired.com/gadgetlab/2011/12/ios-revenues-vs-android/

 

Nov. 2012: iOs App Store has over four times the revenue of Google's app store:

http://thenextweb.com/insider/2012/11/29/google-plays-revenue-rises-by-311-but-apples-app-store-sees-4-times-more-sales-study-says/

 

January 2013: iOS App Store has 3 1/2 times the revenue of Google's app store:

http://blog.appannie.com/app-annie-index-january-2013/

 

April 2013: iOS App Store has about 2 1/2 times the revenue of Google's app store:

http://thenextweb.com/insider/2013/04/17/app-annie-google-play-app-revenue-grew-90-in-q1-2013-but-apples-app-store-still-saw-2-6-times-more-sales/

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post #14 of 34

Anti-Apple takeaway:

 

"iPod Touch Ad Spending Plummets - Final Nail in Apple's Coffin?"

 

Trolls can have that one for free :)

post #15 of 34

to all those android fanboys wondering why google is building iOS apps, here is your answer.

post #16 of 34

Ok - and the $$$ goes to?

post #17 of 34
Quote:
Originally Posted by AdeFowler View Post

I'm yet to see a single iAd. 

Same here. I have very few apps and the only free apps I have are from big names like Skype, Twitter, Google, etc. which don't have iAds. Google doesn't have any ads in their apps either, at least I have not seen any.

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post #18 of 34
Quote:
Originally Posted by AdeFowler View Post

I'm yet to see a single iAd. 

You must not use data apps very much.
   I get an increasing number of ads on my iPhone.

 

As for android phones not being nearly as much on the web, I see that with my android friends.

They just want a phone with a screen.  Most are attracted to the lower up front cost and some to the larger screens.

Most don't look at the real costs, are taken in by deals.  A few pay for data, but don't even use it, partly because  they aren't very computer knowledgeable.

Of course they mostly buy few years back  previous model android phones, because they are so low cost up front and  carriers actually pay you ($0 plus gift cards) to take them away on contract.

post #19 of 34
Quote:
Originally Posted by OllieWallieWhiskers View Post

to all those android fanboys wondering why google is building iOS apps, here is your answer.

What is the answer? Does Google have ads in their apps? Which ones?

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post #20 of 34
Quote:
Originally Posted by anonymouse View Post

Android may be winning by some metric (worldwide market share?), but Android developers are certainly not winning: you can't make money selling Android apps, and, apparently, there's not much ad money to garner either.

That's so true;  because obviously most android users are bottom end users.

post #21 of 34
Quote:
Originally Posted by mstone View Post

What is the answer? Does Google have ads in their apps? Which ones?


Google's SW is spyware.

They are much less obvious in their activities than others.

They collect info on you for their advertisers, who may send you spam Emails.

post #22 of 34
Quote:
Originally Posted by JoshA View Post

Quote:
Originally Posted by mstone View Post

What is the answer? Does Google have ads in their apps? Which ones?


Google's SW is spyware.

They are much less obvious in their activities than others.

They collect info on you for their advertisers, who may send you spam Emails.

I wouldn't know because I don't receive any spam.

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post #23 of 34
Quote:
Originally Posted by OllieWallieWhiskers View Post

to all those android fanboys wondering why google is building iOS apps, here is your answer.

Why would they question Google's tactic of taking money from suckers?
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post #24 of 34
Quote:
Originally Posted by EricTheHalfBee View Post

 

 

Both of you don't get it. It's not about whether the money goes to Apple or iAd. It's about the fact that iOS devices are a better way for companies to spend their $$$ if they want to effectively reach customers.

I'd take it a step further & say it's about companies having more incentive to put more developer hours into their iOS version of their software.  For bigger companies they'll try to make a uniform product but for smaller developers this means Android apps will continue to lack in polish when compared to iOS.  You saw the same thing with PC software vs Mac back when Apple still had a nothing install base.  For those companies that made cross-platform software the Mac version usually sucked in comparison to the PC version.  The quality usually goes where the money is.

 

If Microsoft can get Win Mobile together with business they also will have a fighting chance because with all the AD directory systems out there Win Mobile devices have a natural appeal to IT departments from a management standpoint.  If Microsoft can pull that off Android is in for a serious hurt.  All the geek supporters in the world can't save you when you have issues with polish, take Linux as a prime example.

post #25 of 34
Could be because of
A: Apple users have more disposable income.
B: Apple users are of average intelligence and or gullible, making them susceptible to marketing.
C: Android
users are content in their lives and don't feel the need to fillit with more stuff.

I am leaning towards B for the explanation.
post #26 of 34
Originally Posted by petrosy View Post
I am leaning towards B for the explanation.

 

If we cared where you stood, we probably would have asked. 1oyvey.gif

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply
post #27 of 34
Quote:
Originally Posted by Tallest Skil View Post

If we cared where you stood, we probably would have asked. 1oyvey.gif

I'm sure we won't have to ask to get your terse and arrogant opinion on every single fricking topic will we?

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post #28 of 34
Quote:
Originally Posted by petrosy View Post

Could be because of
A: Apple users have more disposable income.
B: Apple users are of average intelligence and or gullible, making them susceptible to marketing.
C: Android
users are content in their lives and don't feel the need to fillit with more stuff.

I am leaning towards B for the explanation.

 

It's A, as well as the fact that Android users are either "geeks" who have a mistaken notion that Android is "open" and (mostly) the technologically illiterate who don't know what they are getting and don't use apps, including ad supported apps, and don't see ads as a consequence.

 

We know Android users, the "geeks", aren't content in their lives because so many of them come here to troll us.

post #29 of 34
Quote:
Originally Posted by petrosy View Post

Could be because of
A: Apple users have more disposable income.
B: Apple users are of average intelligence and or gullible, making them susceptible to marketing.
C: Android
users are content in their lives and don't feel the need to fillit with more stuff.

I am leaning towards B for the explanation.

 

Your post is....

A: An insightful comment based on facts and evidence.

B: A troll post to bash Apple with made up sterotypes of its users.

 

I am leaning towards B for the explanation.

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post #30 of 34

Several articles from earlier this month, and repeated today in op-eds on Google's latest results, put Google's share of US mobile ad revenue as high as 93%. While iOS users could well be the primary source of mobile advertising revenue in the US, that income is flowing to Google according to advertising research sources.

 

"Google dominates the mobile search market with 93% of U.S. mobile search advertising dollars, according to eMarketer. Facebook is at No. 2, ahead of online music service Pandora Inc. and Twitter. EMarketer expects U.S. mobile ad spending to grow 77% this year to US$7.29 billion, from US$4.11 billion last year."

 

http://business.financialpost.com/2013/04/18/google-earnings-rise-16-as-slump-in-average-ad-prices-eases/

http://marketingland.com/emarketer-google-to-take-more-than-half-of-mobile-advertising-dollars-but-facebook-will-win-majority-of-mobile-display-market-38937

 

FWIW Facebook is expected to make significant gains in mobile ad revenue share this year.


Edited by Gatorguy - 4/18/13 at 6:14pm
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post #31 of 34
Quote:
Originally Posted by Gatorguy View Post

...... put Google's share of US mobile ad revenue as high as 93%.

That should be "mobile SEARCH ad revenue.

What's your point? That mobile Bing isn't doing so well?
post #32 of 34
I live in Hong Kong , I never see iad on my iPhone .
post #33 of 34
Quote:
Originally Posted by caliminius View Post


Did both of you fail to notice that that this article never mentions where that ad money was actually spent? Android has 25%, which is guaranteed to be 25% that is NOT going to Apple. That leaves the other 75% of mobile ad spending. Do you honestly think iAds is getting 75% of all mobile ad spending? If so, you're delusional (especially since the article states they're still third in mobile advertising). The fact is Google doesn't really care which platform advertisers target as long as the give their money to Google.

I agree with your facts but not your interpretation.

No one thinks 75% of ad money is going to Apple.

Apple's income from ads is less than 1% of all of its income.

Google on the other hand, has about 97% of its income relying on ads.

Google bought android and developed it further so that they wouldn't be locked out of mobile advertising.




Let's hypothesize that Google earns 100% of all mobile advertising and that Apple, Facebook, Twitter etc.... earn 0% And that android and iOS are the only mobile OSes.

According to this report ( and we should question every report ), Google would be earning 75% of their mobile ad revenue from iOS devices. Not the devices based on the operating system that they own.

The point being made is that even though there are 3-4x android users VS iOS users worldwide, why are 75% of ad revenues coming from the platform with 20-25% of the users? Do companies pay more to display ads on iOS? So do the ads cost more per user on iOS? Are ads displayed more often in iOS apps than equelivent android apps? I doubt it. Are iOS users using ad supported apps 10x more than android users? Who knows?



Back to reality

Regardless if you are on team Google or team Apple, there's one fact that is really important that we don't know.

Google knows it, but they are not telling. Their silence is deafening.

It's very important to their business since ~97% of there income is from ads and mobile will eventually become even more important.


The fact....

Via mobile devices, which platform is searching more via Google? Google knows this but is silent.

The fact does not ( at least yet ) support their story. So they won't discuss it until android is "winning" them more ad money than iOS.

Maybe it's the cynic in me but if over 50% of mobile searches are from android, I believe that Google would be bragging about it.




Instead we have reports like this.

Suppose an 80/20 split, why does the 80% OS only earn 25% of income while the 20% OS earns 75%

Why are not all users equal? These are questions you should be asking yourself.

Why does iOS earn more money for Google than their own OS. How many phones, tablets, SmartTVs, etc... have to be sold with android until android ad revenue breaks even with iOS.

Will there be so many android devices one day that Google ad revenue is 10-20x on iOS vs collective android devices?

Who knows, ask questions, that's the only way we learn.
post #34 of 34
There's an interesting rumor out in the past couple of days that claims Apple has bigger plans for building on advertising revenue than they've shown so far. According to a story at 9to5 Apple is developing an ad exchange focusing on users of Apple products. How would it work?

" by allowing advertisers to target users as they enter the Apple eco-system on their iPads, MacBooks, various web sites and apps. The system would alert advertisers that an Apple user arrived. Any advertiser tracking that user with a cookie (a piece of software that records previous websites you've looked at) could then bid to serve an ad targeting that user."

Certainly might have some impact on Google ad revenues I would think.
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