“Apple, the biggest mobile application operator, has issued a challenge to Google for control of the nascent mobile advertising industry,” Scott Moritz reports for TheStreet. “Last month during an Apple iPhone OS 4.0 speech, Apple chief Steve Jobs declared it was open season on search. ‘People aren’t searching on a mobile device like they do on desktops. What’s happening is that they are spending all their time in apps,’ Jobs said during his speech on April 8. ‘They are using apps to get to data on the Internet rather than a generalized search.'”
MacDailyNews Take: This is exactly why Eric T. Mole had Google launch their own rapidly-fragmenting, inconsistent, temperamental and beta-like fake iPhone OS called Hemorrh… er, “Android.” They needed a hedge. Unfortunately for Google, their demographics are skewed towards tech ignoramuses, a relative handful of anti-Apple geek tinkerers each of whom has a dusty, unused Dell DJ in a drawer somewhere and is currently on at least their third iPod, and, mainly, jealous Verizon users whose greatest wish is that their carrier would just fargin’ offer Apple’s iPhone already.
Moritz continues, “In his speech to introduce iAds (ads that will run inside applications), Jobs sharpened his point against Google, adding that using apps like Yelp to find restaurants nearby ‘is where the opportunity is to deliver advertising.’ And there it is, the holy grail of the Net search business: ad sales.”
“Mobile ads will bring in an estimated $500 million in revenue for Google this year, according to Caris and Co. analyst Sandeep Aggarwal. That is ‘perhaps the fastest growing revenue line’ for Google, Aggarwal wrote in a research note Monday,” Moritz reports. “Aggarwal also adds that there are a couple challenges along the mobile road for Google. For one, Google’s dominance of search means that each mobile search is — cannibalistically-speaking — one less desktop search. Second, apps on phones bypass Google search.”
Full article here.
MacDailyNews Take: “Google’s going to rue the day they got greedy by deciding to try to work against Apple instead of with them.” – MacDailyNews Take, March 09, 2010
[Thanks to MacDailyNews Reader “JES42” for the heads up.]