Apple’s iAd network is stealing from Google & Yahoo

Apple's iAd mobile advertising networkApple‘s iAd is barely out of the maternity unit but already it’s squaring up to the big boys Google and Yahoo. IDC claims that Apple will have 21 percent of the US mobile advertising market by the end of this year. This is simply astonishing and Steve Jobs must be pleased. Not so Google and Yahoo though. Google’s share is dropping according to IDC and will fall from 27% to 21% by the end of the year. This figure includes AdMob, the network that Google bought earlier this year, so things are worse than they look. Yahoo is expected to drop it’s share from 12% to 9%. Microsoft is also experiencing a fall in market share, from 10% to just 7% by end of the year.

Bear in mind we are talking about market share here. The good news all round is that the market is growing and is expected to expand rapidly in 2011. Estimates vary but IDC reckons the US market for mobile advertising will double to around $500million. Unilever and Best Buy are just two of the companies that have climbed on board Apple’s network. By all accounts they are very happy with the results and others are queuing up to join them.

However, it looks like Steve Jobs will not reach his target of around 50% of the US market by the end of this year. Despite this, with the market growing so rapidly he has got a lot to be pleased about, especially as iAd has only been live since July, so 21% in 6 months is fantastic performance by anyone’s standards, especially considering that when Apple bought Quattro Wireless back in January it had just 9% of the US market.

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