According to data from market analysts IDC reported by Bloomberg Businessweek, Apple’s iAds
mobile advertisingplatform is set to take up 21% of the mobile ad market by the end of the year.
This is a massive jump in market share for Apple, which announced iAds in April and only rolled out the service to developers in July.
IDC predicts that Google, along with other online marketing heavyweights Yahoo and Microsoft will lose market share by year’s end. Google is expected to drop 6% to 21%, Yahoo to dip from 12% to 9% and Microsoft to fall from 10% to 7%.
During Apple’s Worldwide Developers Conference in June, CEO Steve Jobs confirmed that iAds had already attracted $60 million in commitments to buy advertising from major corporations.
However, Apple’s strategy with iAds may not be one purely driven by profits. Mr Jobs stated in the iAds presentation that the service was designed to help developers continue creating free and low-cost apps for its iPhone, iPod and iPad devices. iPhone apps have been a key feature behind phenomenal the success of Apple’s smartphone.
When asked to comment by Bloomberg Businessweek, Google’s mobile director for the Americas, Jason Spero said, “If we are losing share, this market is growing faster than any one we’ve seen.”
While the major internet giants continue to dominate, more and more smaller firms are also joining the mobile advertising gold-rush, which will bring greater competition to the market as it grows.
The proliferation of Apple’s hardware, however, is expected to make iAds a major player in the rapidly-expanding mobile ad market.
