Googe AdWords vs. Apple's iAd

In this recession internet and mobile advertising is big business. Everybody knows that Google Adwords is the leader in internet and mobile advertising. Apple is attempting to muscle its way in by creating iAd. But the main question has been “how does iAd it differ from Google AdWords”?

Steve Job stated that mobile advertising is just not the same as a desktop. With limited screen space on mobile devices the ads from Google and Yahoo clog up screen space. He believes that people tend to use mobile devices for specific applications such as reading a book, playing a game or for business use. Mr. Jobs wants to change all of that. His first step was the iPad. It has sold over 450,000 units and still going.

With Apples new iAd platform, instead of try to compete with Google AdWords, Apple has taken a different approach. Their advertising platform will be for Apps, which Jobs believes is even bigger and more profitable than search. Apple will soon have over 100 million mobile devices out in the market. Their thinking is this… The bulk of peoples mobile activities are performed on applications and they spend an average of 30 minutes per day on them. If 10 ads were to appear on each device per day, that would make up 1 billion ad impressions daily. The ad revenue will be shared at a 60:40 ratio, with the developers getting the bigger share.

In this global economic climate affordability is the name of the game. Google AdWords strives on affordability and its self-serving user-friendly interface. Apple feels that iAd could revolutionize the mobile advertising game through Apps . But the problem is that Apps are not easy to build and could be costly. Jobs train of thought probably is “build them and they will come”. Just like everything else Apple does.

Mobile advertising was a 400-600 million dollar business at the end of fiscal 2009 and forecasters are predicting it to quadruple that by 2013. And Apple wants their piece. Sure… Apple may be the leader in the mobile hardware/software business but Google is the leader in internet and mobile advertising. When Bing announced their search engine Google didn’t even flinch. Will Apple make Google flinch? As long as people are using PC based systems, Google will always be the leader. They are just that good.

Paris Vardakas

pari@gazelleinteractive.com