Apple iAd vs Google Ad Market
San Francisco: Apple has started creating threats to Google in the fast growing ad market through its mobile advertisement efforts. According to a report by Reuters, in the first eight weeks of selling iAds, Apple has got $60 million worth of commitments for mobile ads to run in 2010's second half, from 17 blue-chip brands including Unilever, General Electric and Citigroup.
BGC Financial Analyst Colin Gills said that he believe mobile ads represent an important new revenue stream for Apple, which could potentially account for close to 10 percent of the company's revenue by 2012. The company reported revenue of $36.54 billion in 2009.
Google is dominating internet ads for years through its search engine and now the company is enlarging its business to the web connected gadgets. Though the company doesn't reveal the size of its mobile advertising business, analysts believe annual revenue will be nearly under $500 million and primarily generated from mobile search ads.
As consumers increasingly turn away from their PCs and use smartphones to access the Internet, Google has developed a smartphone operating system, Android, that is now offered on devices made by 21 different hardware vendors.
According to the research firm Gartner, Android was the fourth-ranked smartphone operating system worldwide in the first quarter with 9.6 percent market share, while Apple's iPhone was number 3 with 15.4 percent.
To compete in the apps market, Google has developed a product dubbed AdSense for Mobile. And last month, the company closed its third-largest acquisition ever, shelling out $750 million for AdMob, an advertising firm that specializes in serving ads within smartphone applications.
About iAd
iAd rich media ads offer a dynamic and powerful new way to bring sight, sound, motion, and emotion into the hands of consumers with full-screen video, audio, games, maps, and more. iAd rich media ads allow users to interact with advertising without having to leave their app. With the iAd Network, developers now have a new, easy-to-implement source of revenue. Apple sells and serves the ads, and developers receive 60 percent of advertising revenue.
