Over at All Things Digital, Peter Kafka thinks Apple's iAd scheme is headed for total (or near-total) domination of the ad space on the platform:
I’ve talked to some mobile ad companies that are more hopeful. They think Apple will let them compete with its iAd platform in a fair fight.
Maybe they’re saying that because they have to appear optimistic. Maybe they really believe it. But I think they’re wrong. I think Apple intends to own the ad market for its app ecosystem.
For those who need a refresher, here are some first-look observations and some interesting strategic thoughts from Hill Holliday. Sample:
The big thing that iAd really does is it brings new thinking into the capabilities of mobile display advertising and it wasn’t brought to you by Google. Google has been badly lagging in all aspects of mobile and Apple probably saw the lack of innovation in the mobile advertising market and decided to put their stake in the ground. Let’s also be clear here that mobile display advertising isn’t yet a billion dollar business, this isn’t about the money for Apple but reshaping the industry as they saw fit.
The bottom line for Apple is the continuing creation of new and free apps for the App Store while everything else, like being the innovator in mobile advertising, sticking it to Google, pre-emptively blocking Adobe are just bonuses.
And thanks to MIT Advertising Lab and Ilya Vedrashko.