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Apple Reportedly Looking to Revolutionize Mobile Advertising

As part of its cover story this week on the Apple-Google rivalry, BusinessWeek reports that Apple is seriously looking at ways to revolutionize mobile advertising, leveraging its recent acquisition of Quattro Wireless to go head-to-head to with the Google/AdMob conglomeration.

According to a source familiar with his thinking, Jobs has recognized that "mobile ads suck" and that improving that situation will make Apple even harder to beat.

Not one to shy away from a challenge, particularly when it offends his aesthetic sensibilities, Jobs and his lieutenants have discussed ways to overhaul mobile advertising in the same way they had revolutionized music players and phones, say two sources close to the company. The sources did not reveal specific plans at Apple but say there are several possible ad approaches.

As examples, the report points to the possibility of Apple using geo-location and user data to enhance the relevancy of mobile ads, as well as the creative use of features built into the iPhone to engage users, concepts the company has explored in several patent applications.

Also noted is Apple's vast quantities of user data generated by its closed ecosystem, which could offer Apple a distinct leg up on other competitors as it looks to take on Google.

Apple has a vault of valuable data that can help drive an ad business. It knows precisely which apps, podcasts, videos, and songs people download from iTunes; in many cases it has detailed customer information such as credit-card numbers and home addresses. That gives Apple a chance to blend advertising and e-commerce in new ways, particularly after the acquisition of Quattro. The startup already works with advertisers, including Ford (F), Netflix (NFLX), and Procter & Gamble (PG), to help them figure out when and where to place ads on the sites of publishers, such as Sports Illustrated and CBS News. By tying Quattro's ad-serving technology into its own, Apple would be able to tell advertisers how often and under what circumstances a person clicked on particular ads. "Apple is one of the few brands that could actually go head to head with Google," says Kevin Lee, chief executive of search marketing firm Didit.

One other item of interest included in the cover story is speculation may look to dump Google as the default search engine provider for the iPhone in the future, perhaps striking a deal with historical competitor Microsoft for Bing or developing its own search engine. The move would serve to cut Google off from a significant chunk of Apple's iPhone user data as the rivalry between the two companies continues to grow, limiting Google's ability to use Apple's data to improve its own offerings.

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27 months ago
Obviously mobile data of users is becoming valuable with so many web surfing phones now a days. This would certainly put Apple in an advantageous position. Specially now with the iPhone.
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27 months ago

Also noted is Apple's vast quantities of user data generated by its closed ecosystem, which could offer Apple a distinct leg up on other competitors as it looks to take on Google.


I've never really considered the fact that Apple has been datamining our iPhone warped brains since the beginning...
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27 months ago
And so it begins: all that data that Apple collects via iTunes is about to be used against us. You bought the last Black Eyed Peas album, you can be damn sure you'll be seeing ads for the next one.
Rating: 0 Positives / 0 Negatives
27 months ago

One other item of interest included in the cover story is speculation may look to dump Google as the default search engine provider for the iPhone in the future, perhaps striking a deal with historical competitor Microsoft for Bing or developing its own search engine.


Please God no.
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27 months ago
Hmm.. advertising on your iphone ( or any phone ).

No thanks! Never.

"One other item of interest included in the cover story is speculation may look to dump Google as the default search engine provider for the iPhone in the future, "

Why not give the user a choice of any search engine? Why only Google or Yahoo at the moment?
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27 months ago
I think it will be a very cold day in hell before Apple uses Bing as the default search on one of their products. Bing is awful for the most part.
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27 months ago

And so it begins: all that data that Apple collects via iTunes is about to be used against us. You bought the last Black Eyed Peas album, you can be damn sure you'll be seeing ads for the next one.


Serves you right if you bought a Black Eyed Peas album.


If Apple can find a way to makes ads less annoying, then I'm all for it.

If the ads become more visible and annoying, I won't be very happy.
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27 months ago
Bing. Right.
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27 months ago
I'm actually all for this. We have to face the reality that services like google and bing operate off of their ad revenue. If I'm going to see adds anyway, might as well make them something I'm actually interested in. How many times have you seen an ad on one of your iPhone apps that is totally worthless? I think it's a win win as long as we don't start seeing ads in places that used to be ad-free.
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27 months ago
Well, I suppose it make sense based on this patent application.

While the application mainly focuses on Mac OS X, it does say that the ads could be viewed on cell phones, PDA, etc. It would seem this story further illustrates Apple's look into advertising.
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