AdMob CEO comments on being thrown out of the App Store
On the AdMob blog, chief exec Omar Hamoui stated, "This change is not in the best interests of users or developers. In the history of technology and innovation, it's clear that competition delivers the best outcome. Artificial barriers to competition hurt users and developers and, in the long run, stall technological progress." Hamoui said AdMob would "be speaking with Apple," although there's no indication that Apple will listen.
I'd have to agree with Hamoui's statement. In fact, it's a little off-putting to see Apple react this way, considering it'll only lend fuel to the fire already raging around possible anti-competitive practices. No doubt Steve Jobs has a witty sentence in waiting for this one. Meanwhile, the thousands of developers using AdMob will now have to worry about deploying something else in their apps.
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Big surprise here, right? AdMob, freshly picked for purchase by Google (cue dramatic music) has been expelled from Valhalla, also known as...
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@all those "They are allowed to do what they want on their product" sayers:
The similarities between Microsoft and Apple are raising steadily.
The only question is:
Will they let Apple advance as much as Microsoft did, or will they stop apple beforehand.
Laws and cultural standards prohibiting the powerful from using tricks to exploit the less powerful range as far back to the Magna Carta and as recent as the Sherman Antitrust Act. This is not some left-wing hippy idea -- this is a bedrock of Anglo-American, and of at least various other European nations, culture. People are not cattle, to herd and milk.
Freedom and property-rights are not absolute. They are limited by public policy and the public interest. It has been decided over and over again that competition is in the public interest and the anti-competitive practices are not. Saying something like "Apple can do whatever they want with their ecosystem" or things like "if you don't want to bow to Apple's (or another oligarch's) power, you can make your own phone" shows not only ignorance of basic culture, but a moral bankruptcy as well. You are essentially acting as an apologist for predatory practices -- that is, for a business preying upon customers rather than engaging in ethical business. That's not only immoral, that contrary to centuries old Common law and contemporary statutes.
Your worship/defense of the powerful exploiter, rather than respect for just behavior is a sad statement to your moral and cultural upbringing.
Apple is a very competent company that could compete ethically; these sort of low tactics should be beneath them.
Wow, you're pulling out the Magna Carta for support now...must be despareate. So you are suggesting Google is the less powerful oppressed party in this case? Are you KIDDING?
I think you are operating out of a wrong concept of what a product is. Its not the hardware, its not the software, the entire thing is a product. When you buy the phone you are buying more than just the parts and OS. The App Store is just as much a product itself as well as a part of the i-suite of products. Apple has every right to control the content on that.
Your argument that it is "MY PHONE" again breaks down quickly when one considers how quickly the Psystar suit was tossed. Saying Apple MUST allow other ad vendors onto their platform is like saying Apple MUST allow others to install their OS on other hardware.
This is like saying we should sue GM for not offering a Ford engine at the factory.
If you want a GM car with a ford motor you can do that on your own, after all its "your car", if you want OSX on a Dell laptop you can do that too it your laptop (except you're violationg the EULA), and if you desparately want AdMob ads on your iPhone apps then you can jailbreak your phone.
But this does not hurt the consumer in any tangible way (they will gets ads from thousands of companies, just via iAds) and it only hurts Apple's competitors to the same extent it does by any other business.
This is like saying that Wal-Mart should be forced to run Kmart ads on the TVs that hang from the ceiling inside Wal-Mart. Yeah the store is a marketplace but it is Wal-Mart's marketplace, they own it, they built it, they get to decide what products go into it and what ads get shown. They get to sign deals with Subway and McDonalds to put restaurants inside Wal-Mart and they get to say NO to other restaurants.
@Chris:
Maybe someday you zealots will learn the lesson in all of this. If you guys had the balls to stand up to Apple now and then, instead of treating criticism like treason, these faults wouldn't exist to begin with. Criticism is not a bad thing.
Apple clearly has no need to do better when people like you are out in the world bashing anyone who would dare question the mighty Jobs. You suffer through horrible AT&T service for years, waiting two years for basics like cut and paste, no CHOICE on enabling Flash, no Blu Ray drives, proprietary cables and ports for everything, the list goes on and on - and all the while tearing apart anyone who dares question how this is better than any other (and less expensive) option out there. The message you're sending is "don't worry Apple, we will take whatever you tell us to take." I've never seen a more pathetic display of weak-kneed fealty.
The notion that Apple is right to do this because it will prevent some sort of "spying" by Google is just more short-sighted, us-versus-them bullshit from the fanboi set. They seem to eat it up every time Apple alienates people, because it enhances the "exclusive club" vibe fanbois crave. Somehow I doubt the shareholders feel the same way.
Even if you buy the argument that this is about hiding sensitive information from Google, the end result is the same as the Flash debate and so many others. Apple is perfectly happy and willing to toss average customers and developers under the bus and degrade the experience, as long as it furthers their own petty battles with companies who should be natural allies, were it not for Job's enormous ego. Apple only gets away with it because the brand loyalty of the fanbois is so strong that they don't even care that their choices are being limited - in fact, they defend Apple to the point of arguing IN FAVOR of limiting of their own choice on sites like this. Average customers don't feel that way, and Apple will go back to being an also-ran with a small cult following if this keeps up.
Apple's MO is clear if you look for the pattern. When they have a potential competitor in their sights, they build up a wall of seemingly legit sounding reasons for excluding and/or attacking them but those reasons fall apart under real scrutiny. With ads, they first attacked some ad company for looking at devices within the Apple campus (as if they can't spoof the devices or something) then they pretend Google will be able to "drink their milkshake" if allowed to see advertising analytics from Apple devices. Are we really supposed to believe it's just coincidence that this happens right when they are launching their own ad network? Adobe announces that Flash CS5 will export iDevice apps. Shortly thereafter, Jobs is out there trying to destroy Flash entirely, hammering on Flash for the web and touting a platform (html5) that is many years away from primetime and ALSO doesn't work on iDevices, but it provides the false legitimacy behind his attacks on Adobe. People, wake up and read between the lines.
How's the weather on that fantasy planet you live on where a single user would ever care if AdMob can advertise on their iPhone. (end users couldn't care less about this) Do developers even care? I doubt it. I'm betting most have looked at iAd and said "screw AdMob. iAd is easier to implement and will most likely mean more ad revenue for me. With far less work."
I don't think the data collection will be any factor at all. At this point iAd vs AdMob is like a Corvette vs a Prius with the Prius owner complaining that the Corvette has an advantage because its driver weighs 10 pounds less.
PS HTML5 support is on all Apple devices NOW and Flash is working on exactly 0 shipping Smartphones.
Tim:
The ads issue is one between Apple and developers, not consumers, so let's approach it from that position. Let's assume iAds is the greatest ad network ever, right out of the gate. Even given this very unlikely scenario, Jobs himself said they have $60m committed for the rest of the year (though that will probably increase over time). Divided evenly amongst all ad-supported apps, that means each developer will make a whopping $800 (roughly, and before Apple's 30% cut) for the rest of the year, from what ad inventory is currently slated to be available. You could stretch and suggest that number will go from $60m to $600m (not likely), but that still means each dev could only earn a maximum of $8,000 assuming all ad dollars were spread evenly across all ad-dependent apps. To that point, it also assumes that these advertisers (whom Apple restricted to companies willing to commit multimillion dollar budgets), will even ALLOW their ads to play on apps that don't precisely fit their target demographics, etc. If they are putting up multimillion dollar budgets, they are going to be quite picky about which apps their ads play on.
This is just going to make "app store lotto" even worse where only one out of 5,000 apps stands a chance of making enough money to be worth developing. Excluding outside ad networks means many, many fewer apps can even be ad supported, and those developers will have to charge for the apps instead. This will ultimately harm their ability to earn a living. Developers are only willing to put up with so much bullshit before they look to another platform like Android, where there are zero restrictions, they can develop with whatever tools are best suited, and they don't have to share their revenue with anyone.
In the end, this isn't going to work out well for Apple. You are entitled to think otherwise, but all that ad revenue, and many app developers with it, will be moving to the Android platform. We can argue about it all we want, but in the end the market will decide. For the record, exclusion rather than inclusion has never, ever worked for a company that relies on mass market sales. If they want to go back to being also-rans that cater to a tiny group of "geeks" they are doing a great job.
For the last time people, your iPhone isn't Apple's; it's *YOURS*. They sold it; you bought it. Repeating slogans asserting that Apple can dictate how *YOU* use *YOUR* device, as if the device is Apple's property, not yours, is ridiculous. In summary, YouTube = vendor's private property; Safeway store = vendor's private property; iPhone = NOT vendor's private property.
It'd be one thing if the restrictions were naturally occurring limits. It'd be another if the restriction had some technical merit. However, this restriction is clearly for the purpose of shutting out competition. By avoiding competition, rather than competing and winning, Apple looks like they think they can't successfully compete -- so they'll cheat insead.
If Apple want to 'play hardball' with Google they need to do it ethically -- by producing a a better product/service at a better price.
Umm gee lets try living in reality
Fact-- AdMob is not blocked-just not allowed to collect device data
Fact-- Almost every SDK in existence bars the user from using it to compete directly with its maker. That is in Adobe's SDK's. That is in MS SDK's. And it is in Google's too.
I don't see any point in debating these types of issues anymore. The fanbois will always blindly defend Apple no matter how stupid or egregious their decisions, so why bother trying to convince them otherwise. Look at some of the logical leaps they are taking in an attempt make this decision look rational! It's hilarious.
Apple has been very busy alienating thousands of potential (and current) developers and customers per day, and the share holders are going to regret it. Let's just reflect for moment on whether exclusivity or inclusivity leads to more customers and long term health for a company...
Is the Safeway supermarket required to accept and display ads from its Lucky's competitor across the street?
Further, is Safeway required to make detail information (cash register receipts, promotions, product placement, store design, etc.) accessable to Lucky's so they can do analytics to determine what is selling, to whom, and why?
The Feds may decide that the answer both the above questions is "YES",
But, then, wouldn't Lucky's need to provide the same information to Safeway, A&P... or any other company considering entry into the :supermarket" or "advertising" busineses?
Clearly, this is a two-way street!
Great analogy. Thanks.
June 10 2010 at 4:28 PM Report abuse Permalink rate up rate down ReplyGoogle wanted to play hardball just last month, at the I/O conference. Two days of an anti-Apple all-you-can-eat buffet. So grow some nads and play hardball already. Don't say "Bring it!" one day and then act like a spurned lover the next...
June 10 2010 at 11:25 AM Report abuse Permalink rate up rate down Reply
Do you people even read what you write? Again, if iAd is so great and AdMob is so bad, people will gravitate to iAd products and avoid AdMob's. If AdMob is simply 'prevented' from competing with iAd, then iAd doesn't need to be good, fair, reasonable priced, etc. That is bad.
Second, Apple HAS closed the door to independent mobile ad agencies. By locking those people out of analytics, Apple has ARTIFICIALLY prevented those agency from competing with their analytics-enriched product.
Third, this is BAD for developers and users because without competition, Apple can engage in monopolistic pricing practices with iAd -- that is, charge whatever they want, make whatever demands they want, etc.
Fourth, Apple allowing other company's ad in free apps isn't subsidizing competitors like Google. App developers pay Apple $99 to submit and host apps on the iStore. Moreover, once downloaded, the apps is running on the user's hardware, using the user's data plan, powered by the user's battery charge.
Fifth, just because you chose to buy one product, don't make it right to be forced to buy only other products. If I buy a HP printer, it's not right to be locked into to printing only on HP brand paper -- especially not if HP brand paper is more expensive and/or restrictive. That's abusing your power in one market segment to force users to patronize your product in another segment, which is inherently anti-competitive.
Finally, it's not Apple's platform. They SELL the iPhone; the people who buy them own them. If Apple were giving away iPhones and free data bandwidth, then sure they can only show their own ads, like YouTube.
Also, I don't know about you but my Mac installs and runs OSX, Windows, and Linux. I run in primarily in OSX because OSX outcompetes the others. Why doesn't this same freedom exist on the iPhone, aside from the fact that Apple wants to create a captive, non-competitive market and squeeze money out of mobile device users?
Your whole argument is wrong headed.
Maybe it is bad for developers, but if its bad for developers they can choose to go develop on another platform, and when enough of them do then it would hurt Apple, so it is in Apple's best interest NOT to do things which harm developers.
"Fifth, just because you chose to buy one product, don't make it right to be forced to buy only other products. If I buy a HP printer, it's not right to be locked into to printing only on HP brand paper -- especially not if HP brand paper is more expensive and/or restrictive. "
Why is it not right? What moral law does this violate? I think if HP did that not many people would buy their printers...then the problem fixes itself.
Explain to me how it is monopolistic for apple to control its own ecosystem? People want to act like iTunes is a marketplace but it is not, it is a closed content delivery system invented, built and maintained by apple, it is private property and they can do whatever they want to with it.
By your logic it is unfair for Google not to allow Yahoo's pay-per-click ads in Google search results.
"That's abusing your power in one market segment to force users to patronize your product in another segment, which is inherently anti-competitive."
Nobody's forcing you to do anything. If you don't like the product go buy another phone. The App store is simply a perk or incentive to buy the phone, it is not really a product in and of itself.
Your arguments are completely unpersuasive.
Chris:
No rational people are saying Apple should be "forced" to do anything. What they are clearly trying to say is that they WANT to like and use Apple products, but feel conflicted because of all the bullshit, don't want to support certain bad corporate behavior, and feel like they are paying for marketing hype more than actual features and benefits. This constant smug retort of "if you don't like it, don't buy it" is going to be a self fulfilling prophecy, my friend.
Here's the underlying truth to all this arguing over Apple vs. Everyone Else. Apple's marketing is brilliant - it has created a hoard of people who have hitched their personal identities to the brand, not the features or service, just the brand and the marketing. This is evidenced by the unyielding defense of anything Apple does, no matter how patently stupid. Can't tether your iPad to an iPhone? Makes perfect sense! No copy and paste for two solid years? They were spending all time "getting it right." The fanboys defend ANYTHING, and defend it viciously, because their own egos are on the line. The Apple lapdogs on these forums are such brand-worshipers that they lack the spine to stand up to Apple no matter the issue. You lose all ability to see reason when you link your personal identity to a brand, be it Apple, Android, Republican, Democrat or anything else. When you treat criticism like treason, you are a tyrant and nothing more.
Just a thought here. AdMob ads are NOT BANNED from an iPad, iPhone etc. You get to see them everytime you surf the web.... They just will not be used --- within -- the Apple app natively...
If you are in an app and you select a banner and are taken to the web, google and admob will have you. Stay in the app and you will see Apples version of admob.
Just a thought,
en
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