Showing posts with label Jumptap. Show all posts
Showing posts with label Jumptap. Show all posts

Friday, April 16, 2010

What Apple Has to Do to Dominate Mobile Advertising

What will Apple do to upend Google's dominance in search advertising, as advertising emerges as a major revenue stream in the mobility business? For starters, it will leverage its strength in devices and strong consumer market share. That will be the least of Apple's concerns.

Apple will leverage iTunes as the distribution portal and media manager, something it also will not have a problem with.

Apple will try to leverage the "closed" or "integrated" way it approaches device operation and design, which sacrifices "openness" for assured application operation. And it will block third party applications and ad networks from access to advertising analytics that are the heart of all efforts to personalize advertising for mobile apps.

But there are challenges. Apple has to hope that the Android ecosystem will not flourish. A functional definition might be that Apple gets as much as 50 percent market share for smartphones, while Android fails to approach those levels. It is too early to predict whether this could happen.

There is a bit of execution risk as Apple tries to stake out a "premium" position for its own ad network, compared to others.

Of course, all of this assumes mobile marketing gets critical mass, but most observers think that is only a matter of time.

It would take a brave prognosticator indeed to argue that Apple does not have an excellent shot at upending Google in the emerging mobile marketing business. But there currently is only a small group of large firms in the mobile advertising space, though there are lots of emerging firms trying to muscle their way into the emerging business.

"There's AdMob (Google), Apple and us," says Paran Johar, Jumptap CMO. "That's pretty much it." The Federal Trade Commission might be preparing a challenge to Google's purchase of AdMob. Some of us might be so sure that is necessary. Apple is the company to watch, it might appear.

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