Monday, June 07, 2010

Apple iPhone 4 operating system causes AdMob problem

The Steve Jobs, San Francisco introduction of the Apple iPhone 4 also causes problems for AdMob, the San Mateo-based maker of mobile ads for devices like the iPhone 4. AdMob was just purchased by Google for $750 million in stock.

According to an interview with TechCrunch's Erick Schonfeld on Monday, in New York City for "Internet Week", AdMob CEO Omar Hamoui, said that the new Apple iPhone 4.0 Operating System has a licensing restriction such that phone data can't be sent to third party providers. It's a policy that Omar Hamoui says could be "potentially devastating" to AdMob's iPhone business.

The only good news, so far, is that Apple hasn't enforced the new policy. Hamoui told Erick Schonfeld that "It is not good for developers to have only one choice. It doesn’t make sense. I don’t think it even benefits them. They should want developers to make more money. Having more advertising providers is better than having less."

Hamoui told TechCrunch that 30 to 40 percent of iPhone AdMob ads are actually cross-promiting other apps, and that's why Apple wants to have and control that market using the new iAds system.

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