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Sunday, April 11, 2010

Apple Fights Rival Google on New Turf

Check out this WSJ article on Apple's iAd advertising system.

Apple is making a bet that mobile devices will continue to be app centric. The revenue split between developers and Apple for advertising done through iAd mirrors Apple's App Store and may harness some of the same innovation and explosive growth. Google's model of search driven ads doesn't really translate as well to mobile devices, due to users spending less time searching and less overall searches. Mobile ad revenue is currently fairly small but perhaps this new revenue model and the growth of mobile devices will create new opportunities for advertisers.

2 comments:

  1. I saw the following chart some days ago which I think is a good way to show the difference between expectations when searching on a desktop versus when searching on a mobile.
    http://www.businessinsider.com/chart-of-the-day-why-do-you-use-your-search-engine-2010-4
    Most-user-friendly interface and click-to-call capabilities are the features are desired by the users of mobile (survey by Goldman Sachs). Apple's approach is to provide many great apps with amazing interfaces on the mobile device and generate huge ad revenue.

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  2. At this point, there are three types of advertising online.. Search-triggered; banner-displayed and app-embedded. It is not clear how the mix will evolve in the coming years. Interesting move by Apple.

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