Is Apple taking on the 800 lb Gorilla known as Google?

Taylor Wilson - April 20, 2010

As a nation we are becoming increasingly dependent on our mobile devices for updates, news and general communication. It has become apparent that mobile devices have become the newest battleground for advertising.

According to ComScore, 42.7 million people in the U.S. owned smart phones in an average month between November 09 to January 10, which is up 18 percent from the prior August through October period.

Apple’s plan to launch a new mobile ad platform called “iAd” this summer marks Apple’s first major step into a small but growing industry. iAd will allow businesses to insert advertisements directly into applications offered on the iPhone, iPod Touch and iPad. According to Steve Jobs, “This is where the opportunity to deliver advertising is, not as part of search but as part of apps.” Apple will sell and host the ads, and give the developers 60 percent of the revenue.

Speculators say that Apple’s new venture may be a knee-jerk reaction to the search engine giant Google’s attempt to purchase AdMob, which controls about one-third of the market for advertisements on mobile applications and web pages?
Apple anticipates that their new iAd platform will help cut down on mobile device users’ frustrations by keeping consumers within their existing application or experience, and will make it possible for users to engage in a variety of activities at once, without being forced to leave the application. Apple currently offers more than 185,000 applications for the iPhone and the iPod Touch.
If Apple’s venture into mobile advertising doesn’t assure the importance and competitiveness of mobile advertising, then I am not sure what will. Now is the time to strike when the iron is hot and make sure that you have a mobile presence.