Wednesday, April 14, 2010

The upcoming threat to Google - iAd

Few days back I wrote about the iAd program from Apple. I truly believe that it will redefine the concept of online advertising. According to a survey in 2009, there are around 4.4 billion mobile phone users as compared to around 1.5 billion Internet users. Of the 4.4 billion, 1.8 billion are smart phone users. The rate at which smart phone users are growing is alarming and much faster than Internet users. More are more people are today browsing the Internet over mobile phones and more and more companies are developing custom mobile apps. This will automatically lead to a shift from desktop based online advertising to mobile based advertising. What Google did with online advertising, Apple plans to do in the mobile world. They have the biggest share in smart phone market and it will continue to grow as they launch the iPad.
Almost all of Google's revenues come from selling online ads. To maintain their dominant position, Google needs to quickly devise a totally new program for the mobile platform and counter the threat from iAd. I tried their current mobile advertising solution, but its falls quite short of expectations if You have used their desktop based advertising solutions. Google has a good mobile platform of their own - Android, and that's growing slowly but steadily and they can use that to leverage their mobile advertising. The stakes in this field are very high and although I am a big fan of Google products, I have a feeling that Apple might dislodge their dominance in online advertising in the years to come.

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