Google, Microsoft lose mobile ad share as Apple's iAd grows
Apple's new iAd mobile advertising service is poised to take 21 percent of the U.S. mobile advertising market by the end of 2010, giving the company a market share tied with Google and three times larger than Microsoft.
According to estimates from IDC provided to BusinessWeek, Google, Microsoft and Yahoo have "swiftly lost share" since Apple's iAd debuted in July. By the end of the year, IDC expects Apple and Google to each carry a 21 percent share of the market, which would be a decrease for Google's 27 percent share last year.
Microsoft is expected to see its market share drop as well, from 10 percent last year to 7 percent this year. And Yahoo is projected to drop from 12 percent to 9 percent by the end of 2010, while Nokia will see it share drop from 5 percent to 2 percent.
IDC's figures showing Apple's almost instant success in the mobile advertising market are not, however, as great as the ambitious expectations for iAd shared by CEO Steve Jobs earlier this year. In June, Jobs said iAd would take nearly a 50 percent share of mobile ads in the second half of 2010.
Advertisers who spoke with BusinessWeek reiterated their satisfaction with the performance of iAds. A spokesman for Unilever, which debuted an advertisement for Dove in July, said more than 20 percent of users to view an ad check it out a second time.
A spokesman for Google said the search giant was "experiencing fast growth" this year, though the company declined to give its mobile ad sales for the full year. "If we are losing share, this market is growing faster than any one we've ever seen," said Jason Spero, director of mobile for the Americas at Google.
iAds aim to provide richly interactive ad experiences inside developers' apps, providing them a 60 percent cut of the advertising revenue. The hope is the advertisements -- noted by the iAd logo in the corner -- will be more compelling to users, because they don't have to leave their app and launch a browser to view them.
iAd advertisements act more like full-blown applications, complete with features like videos, interactive games, and the ability to find information such as local stores or product availability.
The iAd platform will expand in November to the iPad, when Apple launches iOS 4.2. Support for iAds was first introduced with iOS 4, released for the iPhone and iPod touch this summer.
Apple plans to use iAd as a program to incentivize App Store development, and does not expect to turn a great profit from its new advertising business, made possible due to the purchase of Quattro Wireless for $275 million.
According to estimates from IDC provided to BusinessWeek, Google, Microsoft and Yahoo have "swiftly lost share" since Apple's iAd debuted in July. By the end of the year, IDC expects Apple and Google to each carry a 21 percent share of the market, which would be a decrease for Google's 27 percent share last year.
Microsoft is expected to see its market share drop as well, from 10 percent last year to 7 percent this year. And Yahoo is projected to drop from 12 percent to 9 percent by the end of 2010, while Nokia will see it share drop from 5 percent to 2 percent.
IDC's figures showing Apple's almost instant success in the mobile advertising market are not, however, as great as the ambitious expectations for iAd shared by CEO Steve Jobs earlier this year. In June, Jobs said iAd would take nearly a 50 percent share of mobile ads in the second half of 2010.
Advertisers who spoke with BusinessWeek reiterated their satisfaction with the performance of iAds. A spokesman for Unilever, which debuted an advertisement for Dove in July, said more than 20 percent of users to view an ad check it out a second time.
A spokesman for Google said the search giant was "experiencing fast growth" this year, though the company declined to give its mobile ad sales for the full year. "If we are losing share, this market is growing faster than any one we've ever seen," said Jason Spero, director of mobile for the Americas at Google.
iAds aim to provide richly interactive ad experiences inside developers' apps, providing them a 60 percent cut of the advertising revenue. The hope is the advertisements -- noted by the iAd logo in the corner -- will be more compelling to users, because they don't have to leave their app and launch a browser to view them.
iAd advertisements act more like full-blown applications, complete with features like videos, interactive games, and the ability to find information such as local stores or product availability.
The iAd platform will expand in November to the iPad, when Apple launches iOS 4.2. Support for iAds was first introduced with iOS 4, released for the iPhone and iPod touch this summer.
Apple plans to use iAd as a program to incentivize App Store development, and does not expect to turn a great profit from its new advertising business, made possible due to the purchase of Quattro Wireless for $275 million.
Comments
That is, when you count numbers (not $$), as they usually do with Android
But I guess lack of sensationalism simply fails to get eyeballs for the advertisers.
Quite shure the number of ads sold by Goofle is much bigger than the iAd sales - so Apple is doomed, as usual.
That is, when you count numbers, not $$, as they usually do with Android
Yes. Too bad Goofle doesn't charge for each copy of Android. A whole lot of numbers x $0.00 still equals $0.00.
I've been impressed with the look of iAd so far.
an kle ska ter . c o m
Have you got anything real to contribute or a you just going to keep pimping that site?
I don't think their goal is to take over the advertising world.
Interesting statistic, but I believe Apple's purpose with iAd is to provide a better user experience, which in turn sells more iPhones.
I don't think their goal is to take over the advertising world.
I agree and I am not saying this will happen (i.e. Apple take over the advertising world) ... but It would be ironic if they end up doing just that simply because it is a better user experience. That would send a pretty powerful message to advertising agencies and yet again Apple turns yet another industry upside down. It could be argued several of Apple's product lines (iTunes Store for example) were not set up to be a profit center per se but rather a service to make ownership of an Apple product more enjoyable and productive. Yet it proves to be far more than that simply because it provides a better user experience. This is why I'd love to see Apple take on Maps and Search one day both focussed on the user not the making money aspect.
And let’s not forget these ads are written in HTML, CSS and Javascript. It wouldn’t be hard for Apple to expand the iAds bubble to the web pages thus hurting Google, Yahoo, MS and even Adobe with very little knowledge.
You read my mind. I was just going to ask that very question ... why is this limited to iOS ... I assume at first as it is touch based but I suspect iOS and OS X will gain many features from each other over time and iAd with mouse and keyboard isn't too much of a stretch I'd have thought.
It's not too late to buy AAPL folks .... I see it didn't dip to profit taking this a.m. I am shocked! China news maybe?
You read my mind. I was just going to ask that very question ... why is this limited to iOS ... I assume at first as it is touch based but I suspect iOS and OS X will gain many features from each other over time and iAd with mouse and keyboard isn't too much of a stretch I'd have thought.
It's not too late to buy AAPL folks .... I see it didn't dip to profit taking this a.m. I am shocked! China news maybe?
I say it?s like anything Apple does. They start with a controllable set and then build slowly and in a controlled way.
LA Times had an article a few days ago that 75% of iAd buyers are renewing or increase spending.PS: I didn?t mention it, but the HTML5, JS and CSS3 would have likely have to have a fallback for older browsers, which isn?t needed in iOS, but that doesn?t seem very difficult in the scope of things, especially when you consider the potential profit Apple could make.
Personally, I've still not seen even a single iAd. Odd that.
Maybe you have but didn?t realize it.
I like Apple, but I just wish these pissing contests would stop as the barometer for a company's success. This is like saying a bus driver (referring to the overall pissing contest, not this article in particular) is eventually doomed because he does not have the passenger capacity nor the coverage an airline pilot has.Or that the only to succeed is to make more money than the pilot and drive him out of business.
But I guess lack of sensationalism simply fails to get eyeballs for the advertisers.
I would think that if Google had not started the phone war that is a good chance Apple would not have entered the Ad market. Of course, I am just guessing. It seems that SJ was happy enough without it and this is a way of getting back at Google.
I think it is sad that Apple and Google could not cooperate long enough to see that Windows was removed as the king of everything PC.
Personally, I've still not seen even a single iAd. Odd that.
AP and NY Times apps. Guaranteed you'll see it there especially in the technology section. I've already stumbled unto 6 different iAds (Nissan, Klondike, Uniliver, Target, AT&T, Audible.com, Citi). I never thought I'd like online ads until iAds. It really is an app inside an app.
I would think that if Google had not started the phone war that is a good chance Apple would not have entered the Ad market. Of course, I am just guessing. It seems that SJ was happy enough without it and this is a way of getting back at Google.
I think it is sad that Apple and Google could not cooperate long enough to see that Windows was removed as the king of everything PC.
First, let's remember that the ONLY reason why Google is in the Android business is to drive ad/search revenue, nothing else. And while they are competing in this arena, they work together in others, so the competition you perceive is only one part of the complex relationships that exist between the two companies. Same with Microsoft. I wouldn't be a bit surprised to see that they all have targeted interests that they are pursuing with each other, depending on market or product set.
WP7 will be driven directly into the Android market because Google followed directly in Microsoft's footsteps in how they engaged the carriers and handset builders, and the majority of the marketshare gained was at Microsoft's expense. Further, both Apple and Google need to license Exchange to do the corporate thing, so trying to simplify these relationships into "the friend of my enemy is my enemy and the enemy of my enemy is my friend" ignores these rather important inter-relationships.
Personally, I've still not seen even a single iAd. Odd that.
Me neither, but if you had to contend with ads, obnoxious or otherwise, isn't not seeing them the best way to enjoy your iPad/iPhone/iPod Touch internet experience!!!...
trying to simplify these relationships into "the friend of my enemy is my enemy and the enemy of my enemy is my friend" ignores these rather important inter-relationships.
Has anyone here had any experience with developing iAds? Is it a relatively straightforward process?.
No. Because Apple won't let you let. Just like when they started the itunes LP etc, iAds is in house only at this point. When the bugs are deemed out of the system, they will release an SDK for making ads
Maybe you have but didn?t realize it.
If the ads are so slick that you saw an iAd but didn't realize it, then what good is to the advertiser who never gets their ad clicked on once, let alone twice!
Personally, I've still not seen even a single iAd. Odd that.
Neither have I, but then again I don't get a lot of the free apps which is where they are most likely to be found.