Google's AdMob attacks Apple's new mobile ad rules

Jun 09, 2010

(AP) -- Google Inc. thinks its increasingly bitter rival Apple Inc. is trying to muscle it out of the mobile advertising competition on the iPhone, iPad and iPod Touch.

The latest dispute between the Silicon Valley powerhouses centers on a proposed change that could hobble Google's ability to sell and place ads on devices running on Apple's latest mobile operating system, which comes out this month.

Omar Hamoui, the executive in charge of Google's newly acquired mobile ad service, AdMob, attacked Apple's new restrictions in a blog posting Wednesday as a threat to competition. He also warned the change would decrease the ad revenue flowing to the developers of iPhone and iPad applications, a scenario that could drive up the prices that consumers pay for the programs.

Apple didn't immediately return calls seeking comment.

Google paid $750 million to buy AdMob, partly because of AdMob's success selling ads on the iPhone. AdMob, founded in 2006, was so good at it that Apple wanted to buy the company before being trumped by Google last fall.

Apple has since set up own ad service, iAd, fueling Google's suspicion that its rival wants to monopolize the commercial messages shown on the more than 50 million iPhones and iPads that have already been sold.

Under the terms of Apple's latest operating system for those devices, critical information for distributing and analyzing ads won't be shared with services owned by makers of other mobile operating systems.

That threatens to lock out AdMob because Google's Android operating system competes with the iPhone.

That could be a major blow to AdMob, which distributed 30 percent of its ads to iPhones, iPads and iPods in April. Hamoui indicated he still hopes to persuade Apple to scrap the rule change.

On the flip side, Apple's restrictions could be an advantage for smaller, independent ad networks that would still have all the usual data needed to place ads on iPhones and iPads. But that could turn out to be a handicap for mobile advertising services seeking to be bought by a larger company such as Microsoft Corp. that has its own mobile operating system.

It's unclear whether Apple will enforce the restrictions on how the ad data can be shared, said Noah Elkin, an analyst for eMarketer, a research firm.

"I think what we have here is two companies sparring for control of what is potentially a very big advertising market," Elkin said. The U.S. mobile ad market is expected to grow from about $600 million this year to more than $1.5 billion in 2013, according to eMarketer.

Both Google and Apple believe mobile devices eventually will supplant personal computers as the main way people surf the Web. Their dueling ambitions to be shape the direction of the mobile market have transformed the companies from allies to antagonists during the past year.

If Apple's new rules on mobile advertising data were to create a competitive barrier, it would likely attract the attention of antitrust regulators.

After a six-month review, the Federal Trade Commission approved Google's purchase of AdMob largely because the agency believe Apple's entrance into the mobile ad market would foster adequate competition. In its approval of the AdMob deal, the FTC vowed to continue to monitor the mobile ad market for anticompetitive behavior.

The FTC declined to comment Wednesday.

Explore further: TCS, Mitsubishi to create new Japan IT services firm

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Google, Apple rivalry heats up

Apr 10, 2010

Google is the undisputed king when it comes to raking in advertising dollars on the Internet, but Apple wants the crown when it comes to ads on mobile devices.

Google CEO discusses China, mobile at meeting

May 14, 2010

(AP) -- Google Inc. CEO Eric Schmidt seems more interested in keeping the peace with China than with Apple Inc. and other rivals in the rapidly growing smart phone market.

Google completes AdMob purchase

May 27, 2010

Google on Thursday said it has completed its purchase of mobile advertising network AdMob and is eagerly integrating its technology into the Internet giant's services.

Google will 'fight' for AdMob: Schmidt

May 20, 2010

Google is prepared to "fight" if US regulators seek to block the Internet giant's purchase of mobile telephone advertising company AdMob, chief executive Eric Schmidt said Thursday.

FTC clears Google purchase of mobile ad service (Update)

May 21, 2010

(AP) -- Federal regulators have approved Google Inc.'s $750 million acquisition of the mobile ad service AdMob despite worries that the deal will enable Google to extend its dominance of Internet marketing ...

Recommended for you

TCS, Mitsubishi to create new Japan IT services firm

1 hour ago

India's biggest outsourcing firm Tata Consultancy Services (TCS) and Japan's Mitsubishi Corp said Monday they are teaming up to create a Japanese software services provider with annual revenues of $600 million.

Chinese tech giant Alibaba set to make a splash with US IPO

16 hours ago

The largest tech IPO of the year will come from a company that many Americans have never heard of. Alibaba Group - a Chinese e-commerce behemoth - has decided to go public in the U.S. after months of speculation that it would ...

Ex-Apple chief plans mobile phone for India

Apr 19, 2014

Former Apple chief executive John Sculley, whose marketing skills helped bring the personal computer to desktops worldwide, says he plans to launch a mobile phone in India to exploit its still largely untapped ...

Airbnb rental site raises $450 mn

Apr 19, 2014

Online lodging listings website Airbnb inked a $450 million funding deal with investors led by TPG, a source close to the matter said Friday.

User comments : 0

More news stories

First steps towards "Experimental Literature 2.0"

As part of a student's thesis, the Laboratory of Digital Humanities at EPFL has developed an application that aims at rearranging literary works by changing their chapter order. "The human simulation" a saga ...

TCS, Mitsubishi to create new Japan IT services firm

India's biggest outsourcing firm Tata Consultancy Services (TCS) and Japan's Mitsubishi Corp said Monday they are teaming up to create a Japanese software services provider with annual revenues of $600 million.

Finnish inventor rethinks design of the axe

(Phys.org) —Finnish inventor Heikki Kärnä is the man behind the Vipukirves Leveraxe, which is a precision tool for splitting firewood. He designed the tool to make the job easier and more efficient, with ...

Meth mouth menace

Something was up in Idaho. While visiting a friend in Athol, a small town north of Coeur d'Alene, Jennifer Towers, director of research affairs at the Tufts University School of Dental Medicine, noticed ...