Mobile Ad War

Apple is making concessions for advertisers as it loses ground to Google in the fast-growing mobile-ad market, reports the Wall St. Journal.

Apple’s iAd service sells ads within mobile apps on iPhones, iPads and iPod touches. It was launched in July of last year.

But response so far has been tepid, says the WSJ. Marketers say they have been turned off by iAd’s high price tag as well as Apple’s sales tactics and control over the creative process.

Google’s AdMob service, on the other hand, is priced more reasonably, ad executives say, and is available on a wide array of devices—not just Apple products.

Apple, having originally asked marketers to commit to spend at least $1 million — an amount later dropped to $500,000 — now has lowered their minimum commitment to $400,000, according to a person familiar with the matter.

Advertisers pay $10 every time an ad is viewed a thousand times and $2 every time it is tapped on.

One major challenge Apple faces: because the company only sells ads that appear on Apple devices, marketers are forced to buy ads from competitors to reach broader audiences, says IDC analyst Karsten Weide.

Last year, Apple shared the top spot in the mobile display ad market with Google, with each company capturing 19%, according to research firm IDC. This year, Apple fell to the No. 3 spot, behind Google and independent mobile ad firm Millennial Media, capturing 15%, or $95 million, of the $630 million market, IDC says.

How fast is the local ad market growing? It depends on how you define ‘Local’, says Paid Content.

According to eMarketer, MagnaGlobal has a much different definition of local online ad spending as opposed to the other two research companies, BIA/Kelsey and Borrell Associates. MagnaGlobal includes only dollars spent on local TV, newspaper and radio sites in its estimates. Local paid search and display ad dollars spent elsewhere are not included.

Posted by Sam Churchill on .

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