Steve Jobs: Here’s How Apple Will Beat Google At Mobile Advertising

8 Comments

Credit: Tricia Duryee

Apple (NSDQ: AAPL), still riding high from a successful iPad launch, added another feather in to its cap today. By far the biggest consumer-facing new feature in the latest iteration of iPhone OS 4.0 is multi-tasking, but the game-changer is iAd, a mobile advertising platform that could result in bigger revenue streams to support developers and publishers that build applications for the iPhone, iPod or iPad. More below on how iAd will work.

On stage at today’s unveiling, Apple’s CEO Steve Jobs was chipper and eager to poke fun at a bevy of companies from Microsoft (NSDQ: MSFT) to Adobe (NSDQ: ADBE) and Google (NSDQ: GOOG). “We weren

8 Comments

Josh

Actually, the model for multitasking that Steve Jobs presented is exactly how Android does multitasking. There is no task manager in Android. There are task manager apps, but you don’t need one. Most will tell you that it is the first thing you should download. they are stuck thinking Windows/Mac OS X on something that is completely different. The way Android works is that a app is cached as new apps need resources, idle apps will be bumped out of the working memory and the new one will get the resources it needs.

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For me, I don’t think Apple can beat Google. I have to agree with David, Google search will always be around. There are things that Apple cannot do just like the Google does.

contentnext

David Chu has it here. Maybe I’m looking at it too historically. But Apple has always considered itself a hardware company first and foremost. It’s why their software is typically pretty cheap. Even their professional offerings are typically dramatically less money then their competitors. Any money that Apple makes off of the iTunes Music/App store is just icing on the cake and from what I’ve read their margins after the infrastructure expenses isn’t very big on those things. That may be why they are now working on building their own server farm now?

David Chu

OS4 will be available to all iPhone and iPod Touches. The feature, multitasking will be limited to iPhone 3GS and above.

At the very least, iAd will serve to depress the value of ads served through competing platforms. Apple is looking and probably has the clout to demand only top tier brands. They also have the option of running the platform at break even, similarly to iTunes, as a service that further enhances their prime objective to sell hardware at a premium.

Even as mobile computing becomes more powerful, apps have the potential to decrease the amount of search traffic and revenues from google search. For example, if I’m at a book store, I can use an app to scan the book and find the cheapest option online that is organized in a friendlier interface than using a google search. Instead of searching in Google news for the latest articles on Apple products, I can keep up to date with the MacDailyNews app.

Google search will always be around, but there are certain categories of searches that an app can handle much more efficiently.

aftab

In my view it will be very difficult for iAd to spread as their presence will only be on Apple’s device.

Steve should remember once the device becomes smarter with better connectivity then good amount of PC users will search on their mobile device with their browsers not necessarily apps.

ianmullins

Yes, this is a game changer iAd – will make mobile advertising in video and apps and attractive business model. Great – lets hav it!

Peter Cranstone

You have to remember – it’s only OS 4.0, everyone who can needs to upgrade, the developers have to add the code and rev all their apps and finally – it will only work on the iPhone. That is a decent marketplace but not the entire marketplace. Apple extracted value today from their platform. Others will feel the pinch, but it’s a big swimming pool.

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