Tag Archives: Marketplace

Will the iPhone require Apple to take a more controlling stake in mobile advertising? A recent rumor has emerged saying that Apple is acquiring Quattro Wireless, an advertising company that is considered to be a competitor to AdMob. While the rumor is unconfirmed and the reasons behind Apple’s purported interest are unknown, it makes for some interesting speculation as to what Apple may have in mind for its advertising future.

In the middle of the rumored acquisition talk is a battle of pride, glory and industry dominance. Google acquired Quattro Wireless competitor AdMob before Apple could close the deal, with some saying that this slap in the face caused Apple to “steal” music search tool LaLa from Google before an acquisition was complete. The ongoing spat may have led to Apple’s supposed acquisition of QuattroWireless, but there’s likely much more to the story than just a company feud.

Apple is in a powerful position as far as mobile devices go, having created and successfully marketed the iPhone on a global scale. Focusing on its platform capabilities, Apple is primed to take the mobile economy in a number of directions. Building out its mobile platform means the furthered generation of an app marketplace that could sustain developers, publishers and service providers. Improving on the device itself will help Apple to retain its customer base in the face of oncoming competitors in the smartphone industry.

Google could become a major contender in the mobile space, as its own Android operating system stands to create a viable marketplace to harbor developers as well. The ability to monetize one’s mobile platform is at the forefront of discussions surrounding smartphones at this point, as the meeting of enterprise and consumerism happily plays out in the havens of wireless service providers.

The point here is that Apple could very well take a larger stance in mobile marketing that occurs around its platform and app marketplace. Early on it appeared as though Apple were moving in this direction, having worked closely with a number of mobile advertising firms towards experimental marketing campaigns associated with native apps on the iPhone. With the growth of the iPhone app market, however, the ability for third parties to take advantage of access to iPhone customers gave revenue opportunities to all parties involved.

Being the middle man, Apple could really benefit from having a more established ad network through which third parties could run campaigns, either unifying the experience for end users or simply extending additional options to advertisers and app developers.

Regardless of what Apple’s plans are, the company is forced to take a closer look at the system operating independently of its own “cult” world, as well as the system it has helped to create and standardize. So far, Apple has announced plans to make iTunes available via the Internet, marking the small but obviously necessary steps Apple is taking to become more convenient for its consumers. Keeping a focus on the consumers will continue to help Apple in whatever ideas it has towards the integration of an ad network.

Mobile providers and device manufacturers are finally realizing the importance of platform marketplaces, and the necessity for nurturing good relationships with members of the developer community. In the past two weeks we’ve seen a handful of initiatives being announced from AT&T, Blackberry, T-Mobile and Verizon. They all have something in common–they’re making some big promises for the developer community, selling them on greater access to their respective customers.

This all comes shortly after Apple announced it had reached the 1 billion mark for downloaded apps through its own mobile marketplace, which features products for just the iPhone and the iPod Touch. Yes, that’s a lot of apps. And it’s a lot of money for Apple, as well as the creators behind the downloaded applications. As more mobile network providers shift their revenue generators from voice calls to data plans, such marketplaces only make sense.

There are several factors involved, contributing to this trend. At the core is the fact that mobile and PC devices are blurring their distinctive lines, creating a device that’s all-encompassing for just about every one of our media, entertainment, work and communication needs. That means that the mobile industry itself needs to be able to continuously shift gears, because it won’t be a service for just voice calls and basic data plans for much longer.

A major driving force in the need for mobile apps has also been the permeating presence of social networking, which easily carries over from mobile to PC devices, and from the virtual to the real world. In the past three years we’ve seen mobile integration for social networking sites limited to basic photo sharing and status updates to an unlimited number of features you can use for the main actions on these sites.
The socialability of mobile applications has also evolved to include games and many other types of apps that were once present on social networks. These marketplaces on social networks and mobile devices are making it easier for applications to bridge the gap and spur the conversion of mobile and PC devices.

Having a strong platform marketplace is going to be key for the future of all the mobile networks. It ties in with the growing virtual goods trend, the support of the developer community, and the ability to meet the demand of consumers. This all goes towards stimulating a certain economic niche which will only grow in size and customization, making mobile platform marketplaces all the more important in the near future.