Apple takes a large bite out of Google's mobile ad revenue

By SiliconIndia   |   Tuesday, 28 September 2010, 10:29 Hrs
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Bangalore: Apple is expected to end the year with 21 percent of the mobile advertising market taking a large bite out of Google's revenue. Google's mobile ad market share slipped from 27 percent last year to 21 percent this year, reveals an IDC report.

The figures include revenue from AdMob, the ad network that Google bought in May to the chagrin of Apple, which was reportedly interested in AdMob. The info provided by the market intelligence firm IDC to Businessweek predicts that Microsoft's market share will drop to 7 percent from 10 percent last year.

While looking at the rise of Apple's ad market, it should also be noted that Apple didn't sell mobile ads last year. Apple's iAd advertising platform for the iPhone and iPod Touch debuted only a couple of months ago.

During the keynote presentation at the Apple Worldwide Developers Conference on June 7, Steve Jobs announced that the iAd platform had already achieved $60 million in ad-buy commitments from the likes of AT&T, Best Buy, Chanel, DirecTV, The Walt Disney Studios and others. He also claimed that Apple was embarking on the iAd adventure not to fill its own coffers, but instead "To help our developers earn money so they continue to create free and low-cost apps."

The prediction is that the market for mobile advertising in the U.S. may more than double to almost $500 million in 2010 and it's only the beginning for a market in its relative infancy, which is why the landscape for mobile ad networks has resembled a kind of boom town.

To have an edge in the booming market, Google and Apple are working on new features for their advertising platforms.

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