Feeds

How Google and Apple exposed their Achilles heels this week

Mobile payments and advertising are rocky ground for the big boys

High performance access to file storage

Has Apple's iAd had it?

Advertising, unlike payments, is a core competence for Google, and its AdMob acquisition has extended this success to mobile. By contrast, Apple has repeatedly reduced the pricing and loosened the terms for its mobile advertising service iAd, in the face of limited uptake by customers, and now it has made its most drastic moves yet, according to Ad Age magazine. The report cites unnamed sources reporting that agencies now need to stump up only $100,000 upfront for an iAd campaign, a far cry from the $1m minimum demanded at launch in 2010.

Apple has also reportedly decided to charge brands only a single rate for every 1,000 ad impressions, rather than its unpopular policy of also imposing an additional fee for a click-through. Developers will also gain more favourable terms, getting 70 per cent of revenue generated from ads within their applications, up from 60 per cent.

All this is designed to claw back some market share from Google's AdMob unit, which had 25 per cent of the US mobile advertising segment last year, according to IDC, a growth of 5 per cent on 2010. By contrast, iAd's share dropped from 19 per cent to 15 per cent in the same period. Meanwhile, the third main player, Millennial Media, has grabbed the second place at 17 per cent (though another calculation, by eMarketer, puts iAd and Millennial virtually neck-and-neck in the US last year, on 18 per cent and 17.7 per cent respectively).

The market could become more crowded soon, with Facebook revealing in its IPO filing that it was not monetizing its mobile traffic effectively yet, but was likely to experiment with some advertising techniques – possibly leading to a full ad platform launch later this year.

The main reasons for iAd's problems, according to disgruntled advertisers, have been high prices, rigid contract terms, and Apple's famous demand for creative control of the ads themselves. It insists on making sure ads support the quality of experience of the iDevices and use rich media formats optimised solely for iOS.

This has driven advertisers to broader and more flexible platforms, particularly Android, and this tide will only rise as the Google OS comes closer to Apple in terms of app download volumes. This has led to Apple becoming progressively more flexible over iAd terms and conditions.

In December, The Wall Street Journal reported that the firm would now consider deals priced as low as $400,000, a floor that appears to have fallen further in 2012. Apple is also agreeing to install a cap on CPM costs and providing mobile marketing training for free to clients.

"Hordes of developers have activated iAd, but they say that Apple hasn't sold enough to make any meaningful revenue for them," the WSJ said.

Copyright © 2012, Faultline

Faultline is published by Rethink Research, a London-based publishing and consulting firm. This weekly newsletter is an assessment of the impact of the week's events in the world of digital media. Faultline is where media meets technology. Subscription details here.

High performance access to file storage

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Nokia offers 'voluntary retirement' to 6,000+ Indian employees
India's 'predictability and stability' cited as mobe-maker's tax payment deadline nears
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
France bans managers from contacting workers outside business hours
«Email? Mais non ... il est plus tard que six heures du soir!»
Adrian Mole author Sue Townsend dies at 68
RIP Blighty's best-selling author of the 1980s
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Analysts: Bright future for smartphones, tablets, wearables
There's plenty of good money to be made if you stay out of the PC market
Jeff Bezos reveals Amazon's brutal scale in annual letter
Bit-flipping retail mogul seems hybrid of Ford and Rockefeller
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.