IDC Sees Apple (AAPL) Taking Gobs of Mobile Ad Market Share by Year's End
Tweet
Share
E-mail
Get Alerts AAPL Hot Sheet
Price: $166.90 +0.64%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 0.5%
Revenue Growth %: -4.3%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 0.5%
Revenue Growth %: -4.3%
Join SI Premium – FREE
According to research from IDC over the weekend, Apple (Nasdaq: AAPL) is making a case for itself and its iAd service, and enough support is building behind the company and its hundreds of millions of dedicated users to propel the segment into an all-out war with rivals Google (Nasdaq: GOOG), Microsoft (Nasdaq: MSFT), and others.
IDC is expecting Apple, who didn't have a share of the advertising market prior, to end 2010 with a 21% claim. Google is expected to drop from 27% to 21%. Microsoft will see a three point decrease, from 10% to 7%. Yahoo! (Nasdaq: YHOO) is expected to drop from 12% to 9%, and Nokia (NYSE: NOK) will lose 3 points, from 5% to 2%.
At the opposite end, smaller firms like Jumptap may see an increase in share from 10% to 13%, and Millennial Media may jump 2 points from 9% to 11%.
The mobile advertising market has grown to $500 million in 2010. Apple noted, in early June, that they already had about $60 million in advertising commitments from such companies as Unilever (NYSE: UL), Best Buy (NYSE: BBY), and DirecTV (NYSE: DTV). Unilever in particular said that they were "extremely happy" with their ads, which launched in July.
In January, 2010, Apple acquired mobile advertiser Quattro Wireless setting-up Google to close on their acquisition of AdMob. The U.S. FTC had previously been a little hesitant of Google's proposal, as the acquisition of AdMob may have caused some antitrust concerns. However, with Apple's move, the FTC relaxed an allowed the merger.
At the unveiling in June, Apple CEO Steve Jobs expected iAd to grab 50% of the market in H210, which IDC sees as wishful thinking. Although an established audience is at hand with Apple, companies may be leaning to others that provide more flexibility in targeting a specific audience.
With the mobile ad market expanding at a rapid pace, and a low barrier-to-entry, IDC notes that "it's not going to be a two-horse race [between Apple and Google]."
IDC is expecting Apple, who didn't have a share of the advertising market prior, to end 2010 with a 21% claim. Google is expected to drop from 27% to 21%. Microsoft will see a three point decrease, from 10% to 7%. Yahoo! (Nasdaq: YHOO) is expected to drop from 12% to 9%, and Nokia (NYSE: NOK) will lose 3 points, from 5% to 2%.
At the opposite end, smaller firms like Jumptap may see an increase in share from 10% to 13%, and Millennial Media may jump 2 points from 9% to 11%.
The mobile advertising market has grown to $500 million in 2010. Apple noted, in early June, that they already had about $60 million in advertising commitments from such companies as Unilever (NYSE: UL), Best Buy (NYSE: BBY), and DirecTV (NYSE: DTV). Unilever in particular said that they were "extremely happy" with their ads, which launched in July.
In January, 2010, Apple acquired mobile advertiser Quattro Wireless setting-up Google to close on their acquisition of AdMob. The U.S. FTC had previously been a little hesitant of Google's proposal, as the acquisition of AdMob may have caused some antitrust concerns. However, with Apple's move, the FTC relaxed an allowed the merger.
At the unveiling in June, Apple CEO Steve Jobs expected iAd to grab 50% of the market in H210, which IDC sees as wishful thinking. Although an established audience is at hand with Apple, companies may be leaning to others that provide more flexibility in targeting a specific audience.
With the mobile ad market expanding at a rapid pace, and a low barrier-to-entry, IDC notes that "it's not going to be a two-horse race [between Apple and Google]."
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Fisker (FSR) files form 10-K, sees more job cuts, reiterates going concern doubts
- Ancora Sends Important Letter to Fellow Shareholders on Norfolk Southern (NSC) Turnaround Plan
- Ancora Sends Important Letter to Fellow Shareholders About Our Collective Opportunity to Transform and Turn Around Norfolk Southern (NSC)
Create E-mail Alert Related Categories
Insiders' BlogRelated Entities
Steve JobsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
