Mobile ads associated with maps or locations are estimated to account for about 25 percent of the roughly $2.5 billion spent on mobile ads in 2012, according to Opus Research, up from 10 percent in 2010. That is reason enough for a battle over map applications.
The reason maps get so much advertising is that geo-location is a fairly serious indicator of purchase intent when a retailer is searched for, within a map app.
Up to this point, Google Maps is used by more than 90 percent of U.S. iPhone users, the Wall Street Journal reports.
But if you believe location based advertising is going to be a big deal, then control of inventory is important. On Google's search engine, 20 percent of searches are for local information.
Digital ad spending by local businesses in 2011 reached $21.2 billion, a figure that is expected to increase by more than 12 percent annually, according to BIA/Kelsey.
The Apple move comes as Google has started to charge app providers a fee for use of Google Maps.
Tuesday, June 5, 2012
Apple and Google Map War is about Ad Revenue
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
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