AdMob Re-Thinks Strategy as Apple Challenges

AdMob is one of the world's largest mobile advertising networks, offering solutions for innovation, branding and monetization on the mobile web. Mobile devices are a critical media platform and we are building the tools to let every business on earth leverage mobile.  

 
 

According to AdMob's "May 2010 Mobile Metrics Report," Google's OS still remained very popular and Android (News - Alert) phone popularity continues to boost its growth. As far as ad requests on AdMob's network were concerned, the iPhone continued to retain its lead.

 
 

The new statistics released reveal that iPhone's share of all AdMob ad requests was down 10 percent from the 50 percent it registered the same time in the year 2009, and Android's share hit 26 percent, up by five percent from a year ago.

 
 

Google gave the ad network more visibility by acquiring AdMob, but the future is fraught with challenges and moving forward will not be that easy. Its rival Apple (News - Alert) has re-written the rules to specifically exclude Google and AdMob from the iPhone platform, which includes the iPhone, iPad, and iPod Touch.

 
 

AdMob generates its data from ad requests in its network of more than 23,000 mobile Web sites and iPhone, Android, Web OS, and Flash Lite applications

 
 

It now faces the question of how it can objectively collect data from its own parent, as the terms will prevent adnetworks from sharing data with their advertisers. AdMob loses heavily in the bargain, and the terms will also hurt small and large developers and consumers as well.

 
 

According to AdMob's May report, the rise in Android's share in the market was due to new phones being outfitted with the Android OS. The Motorola (News - Alert) Droid proved to be rather popular, accounting for 21 percent of all ad requests. The report also found significant growth and differences in mobile phone usage around the world.

 
 

Compared with 27 countries being responsible for AdMob's requests in the year 2008, 2009 saw a significant growth and difference, as 92 countries were responsible for AdMob's requests.

 
 

Nokia (News - Alert) still dominated in Eastern Europe, Africa, and Asia, while Apple lead in Eastern Europe, Africa, and Asia. Taken collectively, Apple, Android and Nokia's Symbian (News - Alert) totaled 90 percent of all AdMob's requests in a month.

 
 

Android continues to experience huge demand in North America, which saw 67 percent of all ad requests in May, while Apple's growth has been more global. The ratio of all Apple mobile devices, iPhone, iPodtouch, and iPad to Android devices was two to one the U.S. but nearly four to one around the world.

 
 

According to the report, in both cases, it was the strong app market that boosted sales, as figures showed users of both devices pent at least 79 minutes using apps and downloading about 9 apps monthly.

 
 

Because of Apple's new terms, AdMob will have to rethink as to how to re-invent its report to make it more useful and relevant. Its new relationship with Google, and the challenge thrown by Apple are other factors that AdMob will have to mull over.

 
 

AdMob was founded in 2006 by an entrepreneur trying to solve a problem. Omar Hamoui wanted to build traffic for his mobile site. He encountered complexity and fragmentation -- it was just too hard to engage users. AdMob was born to remove roadblocks and enable mobile Web businesses.

Mini Swamy is a contributing editor for TMCnet. To read more of her articles, please visit her columnist page.

Edited by Erin Monda