With the announcement that Apple launched the iAd mobile advertising platform, one of the most common questions is that it is different to Google AdWords for mobile.
The iPad now sells and counts more than 450,000 units, and Apple consolidates its leadership as it seeks mobile hardware / software. Before announcing iAds, advertisers who wanted to launch an ad campaign on Apple's mobile devices were in fact only two of their main options. You could use the traditional Google AdWords program to place text, video, or video units on mobile sites that are triggered by keywords, just as Google's traditional desktop search ads work.
Another option was to apply one of the mobile advertising professionals that put ads inside some apps. The largest of these was AdMob, which Google bought after a short war of bidding, and stopped last year with Apple. The other is Quattro Wireless, which Apple bought only a few months ago.
Mobile ad is a big business … and is expected to be much bigger. While the financial year 2009 was $ 400 million + year, it is expected to grow by almost four times by 2013. In fact, over five years, it is estimated that more than 50% of Web ads will appear on mobile devices. By then, the entire advertising market will be billions. It's not hard to understand why Apple wants a piece of this cake.
Steve Jobs today was very convinced that search ads are not working well on mobile devices. The reason for this is a limited-on-screen property, people tend to use mobile devices for certain applications, such as reading a book, playing games, or calling Skype. They do not use the general browsing so much as on a large screen, such as a desktop or laptop. He believes that the real possibility for advertising on mobile devices is to apply to advertising ads with a certain minimum emotional / entertainment value. Think of videos and cool interactive games that are played at the game levels, either before or after a call or application.
Steve apparently does not want to display boring text ads that are scattered by Google and Yahoo so they simply clog the small screen of a mobile device and simply annoy users.
Apple is therefore setting up its own system that serves several purposes. First, you will compete directly with Google with the purchase of AdMob and other mobile-specific ad platforms to give ad units to advertisers. Developers also work to help create the right, optimized ad slots in apps to help them monetize ads and continue to scrape their apps while making money.
Finally, it is unclear how much Apple's creative revenue is for current ads. One would expect them to have some kind of quality control, for example, in applications that are accepted or not accepted at the application store.
What about Google?
Google will continue to sell its ad units through traditional searches. So this is not a direct battle with Google's bread and butter search ads. But since web ads are moving more and more moving in the next few years, it seems to be in direct struggle for the dollar … and the form of ads as things go on.
What has not been mentioned yet, the iAds platform extends beyond Apple's ecosystem. For example, will iAds be able to use on android or Windows mobile devices? Does this platform only apply to Apple devices? Only Steve Jobs knows for sure and the decisive factor is probably what is best for Apple in the long run.