It’s Trial and Error When it Comes to Apple and Advertising

Apple (NASDAQ:AAPL) thought that mobile ads were a market ripe for the company’s usual game-changing tactics, hoping that its iAd mobile advertising service would be a runaway success. It didn’t work out quite that way, with Google (NASDAQ:GOOG) still leading in the mobile ad sweepstakes. According to research firm IDC, this year the pecking order in the mobile ad market saw Apple in third place, behind Google and Millenial Media.

Trying to fix this, Apple is now making soothing moves to all the players in this market. It has offered to reduce commitment levels from marketers from $500,000 to $400,000. Another measure is to simplify the structure of the billing for ad views and ad clicks, and put a cap on the total amount. Unheard of before, Apple is now also inviting advertisers to jamborees at its Cupertino headquarters in an effort to educate them about the mobile marketing scene. Counterpoint: “They are still learning the advertising world,” says Shiv Singh, head of digital at PepsiCo Beverages (NYSE:PEP).

Apple (NASDAQ:AAPL) is also concerned about app developers getting lured away to Google because the company pays them advertising revenue checks. “Apple said, ‘Let’s try to disrupt the advertising business.’ On this one, they didn’t succeed,” says Alexandre Mars, head of mobile for Publicis Groupe SA. “They know that they need to adapt themselves now if they want to survive – even if it is Apple.” Well, Apple certainly has started the baby steps in that direction.

Here’s how Apple and Google are trading now:

Apple Inc. (NASDAQ:AAPL): AAPL shares recently traded at $393.43, up $1.59, or 0.41%. They have traded in a 52-week range of $310.50 to $426.70. Volume today was 3,062,721 shares versus a 3-month average volume of 18,792,600 shares. The company’s trailing P/E is 14.21, while trailing earnings are $27.68 per share. Get the most recent company news and stock data here >>

Google Inc. (NASDAQ:GOOG): GOOG shares recently traded at $633.10, up $7.71, or 1.23%. They have traded in a 52-week range of $473.02 to $642.96. Volume today was 1,034,807 shares versus a 3-month average volume of 3,131,070 shares. The company’s trailing P/E is 21.58, while trailing earnings are $29.34 per share. Get the most recent company news and stock data here >>

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