Apple vs. Google? What Affiliate Marketers Need to Know
Posted by krosenblatt in Affiliate Marketing Thursday, 17 June 2010 12:30 26 Comments
The more connected mobile devices get, the more challenging using them seems to be. The problem with downsizing a computer to the size of a phone is that there’s not always enough room for everyone. At least that’s how Apple feels.
Here’s how it breaks down:
Most manufactures prefer the customer to use their components with their products, so they include Safari browsers and Pages on a Mac, and Internet Explorer and Word on a PC. But when it comes to the Internet, it’s a little trickier to limit usage.
Apple has said anyone can contribute an app to its mobile devices and third parties can sell ads on those apps. As long as Apple approves and the third party’s primary business is serving mobile ads, and – here’s the clinch – the third party isn’t owned or affiliated in any way with a competitor.
Actually, they say “a developer or distributor of mobile devices, mobile operating systems of development environments other than Apple would qualify as independent,” but beneath the legalese it translates as ‘competitor.’
This change in terms came on the heels of Google’s acquisition of AdMob. And it means that any AdMob or Google advertising would no longer be allowed on the iPhone, iPad or iPod Touch.
What’s the damage?
It’s a big deal to AdMob, which, in a recent month, attributed 30 percent of ad requests on the network to Apple mobile devices.
It’s also a big deal to you as an Internet marketer because it means that you’ll need to find a different way to advertise on Apple devices if you’ve been using AdWords.
Granted, Google’s own mobile device, the Android, recent passed the iPhone in the U.S. Smartphone market, as did the Blackberry, so you’re not completely shut out for using AdWords. But Apple has a large enough corner on the Smartphone market that this is a real concern for affiliate marketers and advertisers in general.
The new language also restricts Microsoft and Nokia, who own and operate competitive mobile devices and systems. If Apple’s developer terms stand, advertisers like you will need to use independent ad networks like Millennial Media and Jumptap, if you wanted your ads to appear on Apple devices.
What’s in store?
What do you think? Is this Apple’s response to the success of the Android? Will these regulations restrict technological progress, as AdMob CEO Omar Hamoui wrote on his blog? Will the new terms lead to a drastic loss for Google as AdWord advertisers jump ship, or will it hurt Apple in the end? Is this the shape of things to come, where each Internet or computer powerhouse company has their own device and limits who they allow on their network? Tell us what you think.
With businesses competing for market share, it is possible that each Internet or computer powerhouse company will test a strategy of limiting who they allow on the network. I believe the consumer and businesses will be the losers. Remember when AOL limited their browser to accessing financial information from affiliated companies and how we hated that? It will be most unfortunate if we have to own two or more competing devices in order to access the information available to us.
It is just leverage – rules like that are just bargaining chips
Apple is not blocking ads from anyone, what they are doing is blocking the sharing of information. You do not see google, ms, or yahoo sharing there data collection with each other or Apple, so why should Apple be the only company that shares this sensitive demographic info?
That’s serious stuff…In terms of affiliate marketing, we already know that we can be the initial advertisers and build a business like Google and then get kicked to the curb. Now we are building facebook and right now they like affiliates, but who’s to say in 3 to 5 years. But these major corporations are smart for competing with their own device and advertising, but yes it will hurt the little guy I’m sure. I definitely think, this is another master move by Steve Jobs because he’s not thrilled about the success of Droid X.
This sort of seems well within the M/O of Apple- I was surprised that they let anyone else in on their devices. It’s always been the stance they take in the market- maintain control over everything related to their products so that they can ensure it works just how they want it to. I don’t see why advertising would be different.
If anything, though, I see it as being a potential boon for internet marketers. Google still dominates search advertising- and they’ve become increasingly restrictive in their adwords policies. I heard more and more about alternatives to adwords. So if they lose 30% of the the mobile market share, it gives them incentive to loosen things back up and allow the populous to use adwords again. Maybe the rest of us can go back to adwords, which we all know and at some point loved.
The iphone will soon be one of those junk prepaid phones you can buy at the liquor store
I don’t see the big issue. You can now expand to use the other services and create another stream of income. You still will be using Google ads on other platforms, so no big deal to Internet marketers. It’s to sad we will have to make some adjustments. But if you have been in any business, you learn to adapt.
Txs for this article. I have i-phone and thought about upgrading it, but I don’t like what you are saying. It is not just pure competition Apple/ Google, it is respective CEO and their personal fuzz.
Ideally all phones should have a cross platform to allow all advertisers, but I guess greed exceeds customers. I’m not sure now if i will upgrade my old i-phone. Thanks again. Excellent info.
This technique of limiting competition is not really new to the computer industry. Specifically to Apple, i.e. the limitation of third party software. Quite frankly, I think Apple was a superior when they did that. How about limited carriers for phone service? And lets not forget connectors and chargers for all our electronics. Again, not new. Advertising drives me F’n batty anyway and I’ve found consumers are willing to pay a little extra to keep advertising out of their faces. Sorry developers, if your apps come with advertising too bad!
Apple CEO and evil-genius Steve Jobs is well known for changing the rules and changing the game. Jobs is a fanatic about driving the market(s) and the players to new levels of technological actualization and the chaotic agony that always comes with change. He wants the future to be implemented right now, but only on his terms. This posturing from Apple is just another well calculated move in the ever changing battle to control the hearts and minds (mostly minds) of the marketplace, and be crowned Gate Keeper of the Kingdom. If you look at the 3 month, 6 month, and 1 year performance of Apple stock (AAPL) against Google (GOOG), Microsoft (MSFT), even EBAY and Amazon.com (AMZN), the picture comes clearly into focus. Jobs and Apple are calling the shots and pushing the industry right now, and have been doing so for the last year. This is just another clever ploy to increase the size of the marketplace and expand the boundary lines of user competence (yes, it really is possible). Sometimes you have to head south to go north, especially when you are being followed.
As both an affiliate marketer and a mobile device app developer, I have to say that I like what Apple is doing. Many people find the profusion of ads that get served up on mobile devices, to be over the top. They take up what little screen space there is and on other platforms, people don’t want to tap on those ads, because they will be taken away from what they are doing and into a browser.
By contrast, iPhone users know that tapping on an ad will only pause whatever they are doing and open another window, within that app. They can browse around and even make a purchase, without ever really leaving the original app. When they close the ad window, they are back where they were. Even if they were playing a game, the game is paused, while viewing the ad and the user gets a countdown, to whatever he was doing previously. As a result of this ease of use, iPhone users will be far more likely to tap on an ad than users of any other platform. I expect that because of the new iPhone ad interface, I will get 5 or 10 times more traffic from iPhone users than all of the other mobile devices combined – at least until the others make their ad interface as user friendly.
I have had my iPhone for 2 years and until iOS4, I can’t remember ever tapping on a single ad. I was too busy with what I was doing, to be thrown out of what I was doing. On the other hand, I have tapped on two ads in the last week, because the ad sparked my interest and I knew that I wouldn’t be thrown out of what I was doing, to “learn more”. As for Apple blocking competitors, that’s just good business. Microsoft has made it difficult for competitors to function smoothly on Windows for decades.
Good article – with the shift towards mobile browsing affiliate marketers such as myself really need to think ahead now.
Be interesting to see how this impacts on Dot Tel domains – which currently carry Google AdSense ads and work seamlessly on all types of devices – PCs/Laptops, iPads, Smartphones etc.
But but but but I thought Apple was all about openness unlike the evil Adobe and their stupid flash. I own an Iphone but I must say I detest Apple as a company.
You may not like my comment , so, to clarify my position: I own no Apple products
or equity positions,and am not a friend or relative of any Apple connected persons.
Apple or any business has, and should have, the right to restict access to their platform to keep competitors off it : no company should be obligated to support the profits of their competition.
Note : only indirectly related : why did you not rail against the FTC and FCC rules which
inhibit the profitability of thousands of small, independent businesses by “illegalising” their
use of automated telemessaging, while allowing it for our “truth-streeeetching” polititions?
Why should a “backbone of America” ( a common refrain of said polititions at election time) small business person be subject to a multi-thousand dollar, Gov’t imposed penalty for either telephoning a person who did not invite the contact, or for using modern technology to do so ?
Talk about the consumer and businesses being the losers.
Perhaps your success in your line of business activity has rendered you immune to
the “suffering” of others!
Your comments welcome.
interested to see if lawsuits abound after this move
After a few months of delay, MVNE Zer01 Mobile announced the nationwide launch of its unlimited, prepaid, voice and data service that the company is selling to distributors. The company said its low-cost offering can support unlimited service via mobile VoIP technology running over AT&T Mobility’s network. “Many years of research and testing have culminated in the public launch this week of the new, truly unlimited voice, data and Web mobile wireless service from Zer01 Mobile. Thanks to the ingenuity of the Zer01 Mobile engineering team, our new Veritable Mobile Convergence technology allows each smartphone user to make voice calls or transmit data through a VoIP system,” explained Ben Piilani, CEO of Zer01, in a release.
This is the business of gaining market competition. But the Internet entrepreneurs will be a headache because they have to use multiple devices to advertise mobail
I don’t believe that we the consumer will have to have more than one device. That would be crazy. No one should have to be forced to do so. I really think people are getting ahead of themselves.
I think that’s awesome news. Personally I don’t want to see ads of any kind on my phone. I certainly wouldn’t buy something from my phone. If I want to buy something off the internet, I’m going to use a real computer. About the only thing I use from a phone stand point is email and mapping/gps. I don’t surf the net on that dinky little tiny screen and I certainly don’t look at ads.
Cheers for Apple, Google’s getting to big for its britches anyway, they keep buying all the competition. Ain’t there monopoly laws in place?
i really don’t think that we the consumers will need to more than one device. I just can not see that happening. I will not be forced to that.
Wow Apple! Did you not learn anything when you almost went under when PC’s allowed licensing and you didn’t? You’ll make more money if you share the much larger pie…
I can see each operating system beginning to place advertising limitations. However the big thing with android devices is the open source, anything goes type atmosphere. This alone could separate android and make it an even stronger competitor against apple’s devices should they choose to not limit advertising.
Hopefully this will help lead to Apple’s downfall. iPhone app developers will move to Android where they will be able to make money from advertising without hassle.
Its a shame when companies act in this anti-competitive fashion, it shows they are scared of the competition.
I believe in open markets and competition, I hope Google or MS challenge Apple via the legal system …if there is such legislation tucked away somewhere!
Thats what anybody would do… nourish the competition… your having a laugh!!
They do run the risk of alienating themselves, but as both an andriod and iPhone owner, fewer ads actually might persuade me to take the iPhone.
Google, Dudes… there are other ways too make money other than advertising… Youtubes got to be the most expencive billboard ever!
Specialising in their own (advert-infested or otherwise) brand of phone is a great idea.
Im a die hard Google Lover… id hate to see apple piss em off… they nearly went head on with china what do you think they’l do to a company selling fashion accessories (ipod) to know-no betters?
You guys are all confused, no ad networks are being blocked, only things being blocked are your personal use habits. Google, Bing, and Yahoo do not share your personal use habbits with any other vendors, it is there proverbial secret sauce to decide how much they should charge you for ads, clicks, etc….
So why is Apple wrong keeping there secret sauce to themselves? When Google and all the other search/ad networks open up the information gates, I will be right there with you 110% fighting for Apple to open theirs as well.
Nowhere was it ever stated that Admob had to stop serving ads, they are just as free now as they were before IOS4 to do ads, just now they won’t have your purchase info, sites visited, personal info like name, age, etc…….