Is Apple finally entering the mobile ad sphere?
There are some high-level rumors floating around today that the latest update to the iPhone operating system could contain hooks for developers to begin serving Apple ads in direct competition with Google’s AdMob.
Apple will be holding an event today to talk about the upcoming release of the iPhone OS v.4.0 operating system. There has been a great deal of speculation about what it will include. The best guesses include full multitasking, content synching via Wi-Fi, native facilities for direct printing, better support for business, improved organization and a host of other new and improved features, according to a Telegraph article. While those may be exciting for users, there could be another addition to the iPhone OS that is potentially bigger than the others.
There have been rumors for some time that Apple would roll out a mobile advertising service to compete against the well-known AdMob service, which is now owned by Google. In aid of such a move, Apple acquired Quattro Wireless, a company that makes tools for embedding ads in applications, earlier this year, paying $275 million for the privilege. That acquisition, plus the will to move into the mobile advertising arena, have been seen as fulfilling the primary requirements to put Apple into direct competition with Google on yet another technical front.
This time, though, the competition may actually do Google more good than harm, at least in the beginning. The Federal Trade Commission is still looking at the Google purchase of AdMob, saying that a combination of Google’s Web-based advertising business plus its mobile advertising business may constitute an anti-competitive situation. The entry of Apple into the mobile ad marketplace would certainly constitute competition and may serve to get the FTC off Google’s back.
Regardless, Apple’s entry into the digital advertising marketplace could be significant. It could certainly try to take much of AdMob’s business; remember that AdMob has been reporting every month that most of their traffic is from iPhones and iPod Touches. If Apple were to usurp that business somehow, it would make a large dent in AdMob’s revenue stream. And if Apple decides that it wants to be in the advertising business, and even in the search business (as recent rumors indicate), the Apple-Google battles may soon be entering an entirely new phase.
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