Apple to battle with Google for mobile ads with iAd Network
Apple launched a war with Google over mobile advertising revenues on Thursday as it announced its own iAd network for the iPhone. The move challenges its Silicon Valley rivals core business model and its plans to expand into mobile devices. Steve Jobs, Apple chief executive, said that Googles search-based advertisements were not the future for mobile devices because users tended to spend their time inside apps rather than browsing the web.
Apple will launch its iAd network on the iPhone, iPod touch and iPad later this year. In February, the iPhone and iPod touch accounted for 40 per cent of the mobile ads served up by one of the biggest ad networks, AdMob a sign of the dominance of Apples software platform in the mobile ad market. Under the new ad network part of a 4.0 upgrade to the operating system on Apples mobile devices Apple would host adverts within apps and pass on 60 per cent of the revenues to their developers.
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