Apple iAd Challenges Google's Mobile Ad Strategy
Apple CEO Steve Jobs's introduction of iAd April 8 marked a significant challenge to Google's mobile advertising designs. The Federal Trade Commission is mulling whether or not to sue Google to halt the search engine's $750 million bid to buy AdMob. Rolling out with iPhone 4.0 this summer, iAd appears to have beaten Google to the spot, offering in-application advertising that Google would have offered with AdMob's help.Apple CEO Steve Jobs announced many things during the company's iPhone 4.0 media briefing April 8, but none more dangerous to Google's designs for the mobile Web market than iAd. Rolling out this summer in iPhone 4.0, iAd is a platform that constitutes Apple's reimagining of advertising on smartphones. While Google has extended the keyword advertising model it popularized on the desktop to the mobile phone, Apple's approach is to let iPhone app developers offer ads within applications.
Jobs said most of the ads developers have put into their applications themselves "really suck." He also wrote off Google's practice of putting ads in its search results, a business Google executives have regularly characterized as bountiful and growing.
When Jobs clicked on an ad for the Disney movie "Toy Story 3" in an iPhone app, he was transported to a screen with video clips and offers for theater tickets. When he closed the ad, the screen reverted back to the app.