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Posts Tagged ‘Admob’

Here is an article from SF Gate.

“Google Inc. executive Mike Steib is courting customers such as Progressive Corp. and touting tools that let marketers create the snazzy, interactive ads that rival Apple Inc. has been using to snatch mobile-ad business.

“We have a significant investment in mobile, and competition is going to push us to be really, really good,” Steib said in an interview the day Google closed its $750 million acquisition of AdMob, which places ads on mobile programs and Web pages.

As Google’s head of mobile advertising, Steib leads the effort to build his company’s next $1 billion business from sales of ads on wireless devices – and lessen its dependence on Web-search ads. With a team based in a former cookie factory in Manhattan’s Chelsea neighborhood, Steib is striving to persuade advertisers they will win over more consumers by working with Mountain View-based Google than with Apple.

“It’s safe to say Google will respond to iAd and respond very strongly,” said Michael Collins, chief executive officer at Joule, a mobile-ad agency that’s part of WPP Plc. “They have too many assets to pull from, too many arrows in their quiver.”

Staying ahead may not be easy, now that Apple is luring advertisers to iAd, a service that places ads inside applications that run on its iPhones and other mobile devices. Apple has sold more than $60 million in advertising on iAd since it was announced in April, CEO Steve Jobs said at a conference Monday. That represents about half of the mobile display-ad market for 2010, according to JPMorgan Chase & Co.

Tension between the companies escalated Wednesday when AdMob accused Apple of barring developers from using Google ad services to create ads for the iPhone – a move that may threaten AdMob’s ability to get revenue from the device.

This year, AdMob and Google together may generate more than $100 million in U.S. mobile-ad sales, according to IDC in Framingham, Mass.

Apple won business as Google awaited a green light from the Federal Trade Commission for its $750 million AdMob acquisition, announced in November, Joule’s Collins said.

Introducing iAd “gave Apple the opportunity to suck all the oxygen out of the room,” he said. “Apple is on a tear these days with the iPhone, iAd, the iPad.”

As sales of smart phones rise, more users are viewing ads on handheld devices in addition to – and sometimes instead of – computers or televisions. Spending on mobile ads in the United States is expected to reach almost $500 million this year, from $220 million in 2009, according to IDC.

In the next three years, as much as one-third of global digital ad spending will be devoted to mobile, according to Alexandre Mars, who oversees mobile ads for Publicis Groupe SA.

“You’re seeing advertisers who see mobile marketing as a significant business driver,” said Steib, who joined Google in 2007 from NBC Universal. “This is a big part of the conversation.”

Google’s strategy includes creating tools that help developers embed videos and make ads more interactive, similar to what Apple’s iAd can do. Google also wants to sell more ads tied to a user’s location and deliver coupons for nearby deals, said Steib, Google’s director of emerging platforms.

The company is keen to make money from delivering coupons for nearby businesses and selling ads alongside a tool that lets customers take photos of an item and search for it on the Web, said Steib.

That way, a bistro could offer free appetizers to a nearby customer who’s searching for a place to eat, and the user could later see where to buy a bottle of the wine paired with dinner. The restaurant and wine seller would pay Google for the ads.

Google and AdMob together had 21 percent of the U.S. mobile ad market in 2009, said IDC analyst Karsten Weide. Quattro Wireless, which Apple acquired in January after losing out on AdMob to Google, had 7 percent.

‘Short-term disruption’

Steib says iAd may create “short-term disruption.” Still, Google can contain the fallout in part because it has experience letting customers manage campaigns on multiple Web sites and it can change ads on the fly based on performance, said Steib, who himself is an avid user of Apple products. He owns about a dozen iPods, iPhones and the new iPad.

Bank of America Corp. went from buying an occasional mobile campaign to paying Phonevalley, the agency run by Publicis’ Mars, a $1 million annual retainer. Google’s AdMob is among the ad-placement companies used by the financial institution, the largest U.S. bank by assets.

“We did take a hard look at iAd and we passed on it,” said Kathryn Condon, a vice president of digital marketing at Bank of America. She said she’s not convinced it will provide more value than AdMob and the other companies the bank uses.”

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Here is a good article written by Chris O’Brien, San Jose Mercury News.

“Last week, I reviewed my predictions for 2009. And by grading myself generously, I got 3.5 out of 9. So now it’s on to 2010, when hopefully my foresight, and the valley’s economy, will improve.

It’s tempting to pick some easy targets to inflate my score. But instead, I’m going to make some daring picks, again, because when it comes to punditry, it’s always better to wrong than boring. Or something like that.

So, onward:

1. Palm will be sold.

Sad to say, but it’s inevitable. This will be the year this valley icon ceases to be an independent company. The launch of the Palm Pre and Pixi were valiant efforts. They created an exciting mobile platform and should be valuable to someone else. But sales of the Pre are already stalling. And so is cash flow.

There are plenty of potential buyers out there, from other mobile companies like Motorola and Nokia to other tech biggies like Hewlett-Packard and Dell, which need to get deeper into the mobile space.

2. There will be at least four valley-based green-tech IPOs.

Everyone is predicting a big comeback for the IPO this year. I don’t think that will happen for Silicon Valley. But I think green-tech will be the exception. I had started writing this before Solyndra filed for its IPO. So I’ve only got three to go! Who are the other candidates? Tesla and Silver Springs Networks seem to be increasingly good bets. The fourth will be a dark horse.

3. Intel settles

everything.

The deal with AMD was the first step to putting Intel’s long-running legal feuds in the past. Yes, the legal thicket seem to be getting worse with the filing of the Federal Trade Commission’s case against Intel. But the economy is warming back up, and so are computer and chip sales. Intel will make the smart move by settling these cases so it can focus on reaping the benefits of an improving economy.

4. The mythical beasts will arrive: the Apple Tablet and the Google Phone.

My colleague, Troy Wolverton, says nay, the Google phone will remain a mirage. Indeed, the existence of these two products has been long rumored and much denied. But the increasing chatter about both leads me to believe we’ll see them in 2010.

The intriguing question is: How much will they cost? Apple has recently overcharged for new products like the iPhone, and then brought the price down. I wouldn’t be surprised if the same happens with the tablet.

For Google, there’s a radical notion making its way around the valley: What if Google gave away its phone for free, hoping to make money off mobile advertising? Now, that would be truly disruptive. It has the billions in the bank to underwrite such a plan for several years. But does it have the guts?

5. Facebook and LinkedIn won’t go public.

These social networking companies are in no hurry. Facebook is still tweaking its revenue model, as is LinkedIn. When their revenues pick up steam, they’ll eventually bump into some federal rules that require certain financial disclosures, just as Google did early last decade. But they’ve got at least another year before they have to worry about that. In the meantime, their founders are in no rush to give up the control they would lose by going public.

Indeed, I think that sentiment is widespread among many tech startups. Why rush into an IPO? And this is part of the reason why I don’t expect tech IPOs to come roaring back this year. Even Zynga, the social gaming company and long-rumored IPO candidate, recently took a big investment from a Russian firm so it could reduce pressures to go public. Don’t expect to party like it’s 1999.

6. Jobs will post a slight gain.

As a guide, let’s look at the last two recessions in Silicon Valley. The one in the early 1990s was relatively shallow. The number of jobs peaked in August 1990 and then declined for 18 months, before beginning a rebound that lasted the rest of the decade.

Following the dot-com bust, we hit a job peak in December 2000, and then hit bottom 37 months later, in January 2004.

This current downturn falls in between at the moment. Jobs in Silicon Valley peaked in December 2007, so we’ve been headed down for about 23 months. Though that’s complicated, because in recent months, the job numbers have bounced up and down. Still, this downturn feels less severe in the valley than the dot-com bust. So I expect that 2010 is the year we see a net gain in jobs for Santa Clara and San Mateo counties.

7. Twitter.

Can I do a predictions list and not say something about Twitter? Probably not, so here goes. Twitter’s traffic will decline this year. We’ve seen it stall already in the U.S. and it’s begun to flatten around the globe. I say this, though I remain completely obsessed with Twitter and consider it indispensable at this point.

Unfortunately for Twitter, I never actually visit its site. Rather, I use one of the many third-party applications to write, view and filter tweets. That’s good for me. Bad for Twitter, because it will make it harder for them to make money from me. There’s mumblings recently that not only is Twitter getting revenue, but it may be nearly profitable. But the upside may be limited if Twitter’s traffic is flattening.

8. Google gets hit with an antitrust suit.

The company narrowly skirted a federal anti-trust action in 2008 when it scuttled a search deal with Yahoo. But even though it’s doing its best to cozy up to the Obama administration, and trying to play up it’s “do no evil” motto, there’s some indication that federal antitrust regulators have Google in their cross hairs. Maybe it will be over the controversial Google Book settlement. Maybe it will be over its acquisition of mobile advertising leader AdMob. Or with Google going on an acquisition binge, it could be over some other deal on the horizon. But expect Google and the feds to lock horns in 2010.

9. The number of public companies in Silicon Valley continues to fall.

It’s been falling since 2000. And I see no reason that it will stop this year. That means that acquisitions will rise and consolidation will continue. And while IPOs will reappear, they won’t be enough to make up for the number of public companies that are acquired or go bankrupt.

10. And finally, I’ll end by going way out on a limb: Cisco Systems will buy Dell.

Think about it. Hewlett Packard has been gearing up in recent years to invade Cisco’s turf by moving into the networking space. This is Cisco’s greatest challenge in almost a decade. Cisco will need to respond by buying a PC company both to achieve greater scale and to match the range of products it can offer customers. Cisco has about five times as much market value as Dell, which has been struggling for years to regain its leadership in the PC business, which it lost to HP.

Put Cisco’s line of networking equipment and annual revenue of $36 billion with Dell’s PCs and $61 billion in annual revenue, and you still have a company a bit smaller than HP and its $118 million in annual revenue. But it gets them close.

Cisco’s Chambers has also recently ruled out launching or buying a mobile computing device. But, never say never in the tech world. This an area where both HP, Cisco and Dell need to be in the coming decade.”

This article was posted originally in American Chronicle.

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Since its inception in July last year, Appstore has become a steady and viable business model for Apple. With over 1 Billion downloads, its fair to say that the rest of the mobile industry needs to take a very close look at the model.

As a result, Apple can now show some very significant numbers towards the mobile content market.

“There are over 37 million devices running Apple’s mobile operating system: over 21 million iPhones and over 15 million iPod touches (with 35,000+ apps available in the store) according to the company. Besides driving the success of the App Store, these devices also helped Apple control 50 percent of the mobile ad market and drive the most mobile OS Internet traffic in the U.S., according to the latest market reports.”

In relation to mobile advertising, the PC World story continues;

AdMob’s research shows that the iPhone and iPod touch serve around 50 percent of the mobile ad requests in the U.S., followed by Research In Motion with 22 percent and Windows Mobile with 11 percent. Worldwide, Apple’s handsets go neck-to-neck with Nokia‘s when it comes to traffic generated by smartphones. AdMob’s data shows that Apple’s devices drive the most traffic world wide, counting in at 38 percent.”

Mashable, which mainly covers Web 2.0 news, made an interesting comparrison.

“The milestones comes just over three months after the company surpassed 500 million downloads, and about nine months since launching.

While it’s certainly an enormous milestone, how does it compare to some other massive numbers that various Web companies have reached recently? Here’s a look at a few huge stats:

While impressive in its own, and somewhat unrelated to eachother – web.20 have proven to produce some gigantic numbers that are serving as benchmarks for success.

Comprehensive blog coverage can be found here:  IntoMobile, MediaMemo, TechCrunch, SciTechBlog

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