It appears that Apple Inc. is not barring Google Inc. and other companies and sites from selling their targeted ads in the iPhone and iPad applications. A few weeks ago, the company has implied that it will do just that. But, now, there is no evidence that they have. Many software developers are stating that their new and updated applications are getting approval from Apple even though the applications are permitted to serve ads by third-party ad networks like Google’s Mobile AdSense and AdMob.
Comments have been requested from both Apple and Google. However, none have come forward to address the issue on the ad services. The control system that Apple has long been attempting to implement on the mobile advertisements within its devices, such as the world’s most desired, like the famous iPhone as well as the iPad is at issue here. On Thursday, the Cupertino company from California released its own mobile advertising service called iAds. This works with brands to create interactive ads that will appear inside the applications. Apple is said to be asking for $1 million to $10 million from the marketers who make use of iAds, along with 60% of its income and revenue going to the developers.
But there have been some speculation about the intent of Apple to limit and prevent networks from competing with iAds. This happened around the time, in April to be exact, when the company changed its rules on how the development of applications in its App Store is governed.
The new set of rules which are part of a license agreement for Apple’s iOS 4 operating system designed for iPhone as well as iPad devices, have been interpreted to imply that the company will be prohibiting ad companies from collecting usage data from applications, therefore making it more difficult to target ads to users and thus compete with iAds.
Apple made a few concessions to the terms so that it can permit some independent networks for advertisements to collect user data so they can sell ads. These changes were said to be that which will bar Google from serving targeted ads in Apple’s App Store because there is an explicit statement that says that advertising service providers owned by a developer of mobile handheld devices like phones and PDA’s and their mobile operating systems do not qualify as independent. Apple still has not confirmed who it was referring to with the revealing statement but Google ended up publicly criticizing Apple over this amendment.
There are many apps, which include, “Super KO Boxing 2”, were approved of late so it can be used in iPhones and iPads. The app will then use Google’s AdSense to place its ads.
There is no apparent reason why Apple is not enforcing this rule. However, while the mobile-advertising marketplace is quickly growing, it has attracted the inspection of regulators from different federal antitrust companies, that apps with third-party ad services are still getting their approval into the App Store so the pressure on Apple could be alleviated.
The concept of Mobile advertising is very important for developers because they are getting paid for hosting the said ads. The revenue from the ads which were sold on mobile phones in the United States is anticipated to increase a whipping 43% to $593 million dollars in the year 2010.
As of this moment, advertising companies say that the iAds is responsible for creating more business rather than making the competition obsolete because they have generated so much interest in the realm of mobile advertising. Because of this, the opportunity can be taken advantage of by both the users and the developers.
