In a recent bid of events, Apple has decided that it will ban third-parties from accessing data from its devices such as iPad, iPod Touch and iPhones. Such a decision, however, has brought in a lot of flak from AdMob and Google.
Apple has recently decided that only independent advertising service providers will be given access to data collection through iPod, iPhones etc. These independent advertising agencies will only be considered as independent when they are not affiliated to or associated with any of the other companies which develop or distribute mobile phones, operating systems or developmental environments. This move by Apple will ban most of the applications developed or run by other companies such as Google, AdMob, and Microsoft etc.
Google had announced its decision to acquire AdMob in late 2009, while the acquisition took place for an amount of $750 million recently. Now as research estimates show, more than a quarter (30% +) of the yearly earnings by AdMob came from advertising through the Apple devices such as iPod, iPad and iPhones. The move by Apple, therefore, is sure to hit AdMob and Google alike. In such a scenario, AdMob’s founder, Omar Hamoui’s statements lashing Apple seem much understandable. According to Hamoui, creating artificial barriers such as the conditions set by Apple will surely hit the technological innovations happening within the industry. Apart from the innovations, even the users and developers will face problems in the long run. The users will have limited choices and options, hence depleting their overall experience of the product. Then again, advertising makes for the main source of funding the free and low cost applications. Banning third-party advertising will, therefore, affect the development of these applications as well. Then again, Hamoui insisted that Apple’s decision is merely a competition cutter aiming at the companies with competitive mobile operating environments like Google and companies whose main business focus is not mobile advertising.
Google’s Increased Market Share
The new decision by Apple came just after the announcement from Steve Jobs stating that the promotion of the new mobile advertising platform called as iAd. According to Jobs, with the launch of this new mobile advertising application, Apple will soon be reigning over at least 48% of the market share by the end of this year. Expected to be launched by July though, Jobs had at that time insisted that only those using the data collection in a wrong manner will be banned, while the devices will be open to the non-iAd networks.
The present terms now conclude that anyone wishing to use data collection and analyze using Apple devices will first have to get a written consent from the company. Furthermore, the companies will not be allowed to use analytics software to analyze and process the user or device data for third parties.
In response to the decision, AdMob has decided to express its concerns about the competitive curbs and harms of the decision on the overall industry to Apple.