4 is spearheading Apple’s attack on the lucrative mobile
the iPhone 4 at a conference in San Francisco yesterday,
Apple chief Steve Jobs claimed that Apple will control 48% of the mobile
advertising market by the end of this year through iAd. The iPhone 4 is the
first iPhone to include iAd.
The iAd platform,
which Apple launched earlier this year, allows app developers and Apple to make
money from advertising contained within apps. Apple is offering developers 60%
of all advertising revenue from their Apple apps.
senior analyst at CCS Insight, said the inclusion of iAd on the iPhone 4 could
lead to a fundamental shift in the dynamics of the mobile phone industry.
be hugely disruptive. Should iAd really start to generate revenue Apple could
suddenly be in a very strong and lucrative position and it could use its
revenue to lower and subsidise the price of iPhones making it less reliant on
operators and much more accessible.’
He added: ‘In
the long term this is the scenario the operators have always feared – that they
do just become just a dumb pipe for other companies services and advertising
Apple also had ‘first mover’ advantage over Google, which recently bought AdMob
to spearhead its ambitions in the mobile advertising market.
‘There is a
lot of fighting for developer mindshare at the moment and this will strengthen
Apple’s position with developers. Until we see Google start to respond Apple
will continue to strengthen its position in this area.’
Blaber said Google would be a tough adversary. ‘Google know a lot about
advertising and we should not underestimate them. In addition it is positioning
itself as a much more open and collaborative partner than Apple. The stringent
requirements which Apple typically puts on developers and advertisers may drive
them to Google and Android handsets.’
Blaber said mobile advertising is in its early stages and has yet to prove
itself. ‘It remains to be seen how successful and how much revenue Apple can
drive,’ he added.
Shepherd, analyst at Canalys said iAd adds another dimension to Apple’s
said Apple’s high end users would be particular interesting to advertisers.However he
questioned how much of a threat iAd will pose to Google.
‘It is a
challenge to Google but the two can’t really go head to head as they are
separate eco systems. Apple has put a stake in the ground saying they are not
going to outsource advertising, that they are going to control it for their own
eco system and for users at the high end of the market,’ he said.