Apple’s mobile ad platform will hurt Google


Apple's new mobile ad platform was unveiled to the ad execs on New York's Madison Avenue in April 2010. Although being described as "revolutionary" and "our next big thing" by Steve Jobs, it is essentially a paid search system for mobile platforms – mainly Apple at the moment.

This will change throughout 2010 and be established by 2011, but as ever, Apple is not responding to requests from press for further information, but the fact that Apple bought mobile advertising developer Quattro back in January for nearly $300 million surely means that the Cupertino computing giant has some plans in the mobile ad arena.


"The war has been mounting ever since Google introduced its Android mobile operating system to compete with Apple's iPhone, and agreed to acquire mobile ad firm AdMob for $750 million, but it is expected to reach ballistic proportions following Apple's April 7th announcement, which insiders say will be every bit as important as other recent marketplace introductions, including the iPod, iTunes, iPhone and iPad launches," writes MediaPost's Joe Mandese.

"Apple appears to have been more successful in its revenue diversification, developing substantial software and service businesses, including iTunes downloads, iPhone wireless subscriptions, and App Store downloads. And while advertising has always loomed as a huge possibility for Apple, it had essentially been unexploited as a business model until Apple acquired Quattro."


Apple plans to make the first wave of iAds itself:

"In the beginning, all ads will be built (in HTML5) by the iAd team," blogs Hill Holliday's Ilya Vedrashko. "In the future, Apple will release an iAd SDK."

A software development kit (SDK) is typically a set of development tools that allows for the creation of applications for a certain software. At the moment this does not exists. So only comparatively large budget/adspend users will be allowed on the iAd.

iAd will only work on iPhone and iPod touch initially, with iPad support following later.

Which isn't a huge surprise, since iAd will launch in June (2010) as part of the iPhone OS 4 software, which won't be available for iPads until the fall/Autumn 2010.

Apple’s new rules brokering its ads inside iPhone and iPad apps is insisting that anyone who writes an iPhone and iPad apps may only share user-interaction data with Apple. This means that only Apple's iAds platform can know when users view and interact with embedded ads.

Google will be shut out from the scheme and other ad-broker systems apparently won't be able to see it either. This, so Apple thinks, will hurt Google's AdMob.