Apple stealing ad revenue from Google and Microsoft

iAd grabs mobile ad market share pie chart

With the Launch of iAd by Apple many companies are choosing to advertise with them instead of Google or Microsoft. Businessweek.com reported that Apple may control as much as 21% of the market by the end of the year. Google will drop to 21% from last year’s holding of 27% and Microsoft, who was only just getting into ads, will drop to just 7% from last year’s 10%.

Not bad for Apple, who wasn't even in the mobile advertising market until they bought Quattro Wireless and announced iAd back at WWDC 2010.

Unilever, whose first iAd made its debut in July, is "extremely happy" with the results of its ad campaigns, Rob Master, the company's North American media director, says in an interview. More than 20 percent of people who click on Unilever iAds—which feature video and an interactive game—check out the ad a second time, he says.

Natalie Kerris, a spokesperson at Apple, reports that since June the number of brands that use Apple’s iAd has doubled. This trend isn’t just affecting Google and Microsoft either as both Nokia and Yahoo ad services are suffering as well.

Have you seen iAds in your apps? Are you any more likely to check out the products showcased in an iAd compared to a Google AdMob ad, or an ad from another network? Is Apple really offering a better experience for both advertisers and end users? Let us know your thoughts.

This is an official entry by Slyfi in TiPb’s next top blogger contest. Think you have what it takes to join Team TiPb? Bring it!

[Business Week via Fortune]

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Reader comments

Apple stealing ad revenue from Google and Microsoft

18 Comments

Yeah I do iAds more, mostly because I know it's not going to send me straight to safari. Google ads have gotten better since iAds came out.

I'm just happy I don't see the same 2 ads anymore for dove and Nissan. I clicked on some of the news ones just to see. They are a lot prettier looking than just about every other ad I see in my apps. That said, ads are still lame.

I've actually loved my iad experiences. I think I've looked at the Nissan peace bomb one several times, and a runkeeper ad almost convinced me to stop running and find the nearest Klondike bar. They even showed me where to go and let me get directions! More interesting for users, more revenue for developers. Love it.

Personally I only tap iAds because I know that if I don't find whatever is advertised apeeling I can simple hit the X and get right back to where I left off. No loss of time and there is no losing my train of though on which app I was in or how do I get back. Simple and easy and thus the only Ad I tap

Apple shouldn't be in the advertising business any more than Google should be in the mobile phone business. Alas, that is the world today. Personally, I never tap on any ads, iAds or otherwise. Never.

What I like about iAds is that unlike other advertising methods, where the ad takes up half the screen, the iAds just stays at the bottom. It doesn't intrude and is usually well made. I'll prefer these ads over anything akin to punching some damn monkey.

"which feature video and an interactive game"
Now we know why Apple didn't want Flash running on their mobile system, they wanted ad revenue from those "punch the monkey" games for themselves!

I was skeptical at first but after clicking on a Nissan leaf ad I am sold it actually made me give that car a decent look when i never would have considered purchasing it before.

So Apple will control the 21% market with 3 iAds? That's the largest Apple delusion I've heard so far, and I've heard pretty wild ones.

I click ads only in free programs; I figure it pays the developers for their fine (or so-so) work. I am especially likely to do this if the ads are only on a front page and not on subsequent data pages in an app. In fact, I make it a point to click on ads on free websites (like this one) occasionally.
"Click-it when it doesn't annoy you--" I think that should be the new web-etiquette.

OMG, we're doomed. People clicking ads because they think that's how to support developers. "Gosh, no money comes out of my pocket but the developer gets money from someone somewhere. It must be magic." If you really want to support a developer, give them the money they deserve directly. Either buy the full version of the app or send them a donation. Sending them an encouraging message would be nice too.