Is Apple Beating Google at Its Own Game?

Apple (NASDAQ: AAPL  ) has devices with integrated hardware and software. Google (NASDAQ: GOOGL  ) has search and advertising. This dichotomy has existed since the dawn of time (this may be an exaggeration).

For the most part, the two competing titans have mostly acknowledged each other's respective strengths in their core businesses, even if they dip their toes in to compete a little from time to time. You'd normally think it impossible for Nexus devices to outsell iDevices, or Apple to beat Google in advertising. Well, you'd be partially wrong with the latter.

According to a recent report from MoPub, iOS is beating Android in mobile ad market share, grabbing 75% of advertiser spending. That's when combining iPhone, iPad, and iPod Touch ad spending to total Android ad spending.

Source: MoPub via AppleInsider.

The iPhone alone gobbles up half of the market, with Android claiming a quarter. Some of Android's weakness relates to the slow uptake of Android tablets, with MoPub estimating ad spending in that segment at less than 1%.

The ad platform operator believes that iOS trumps Android in two important ways, at least as far advertisers are concerned. iOS users have been shown time and time again to have a higher propensity to spend money, which makes them more valuable to advertisers. iOS also boasts more "rich media" ads that tend to be more engaging and yield higher click-through rates.

MoPub is designed for publishers to manage ad inventory on iOS and Android, so the report doesn't necessarily represent the broader market. The figures seemingly contradict a separate report recently released by IDC on the mobile display ad market, which put Big G firmly on top, and Apple in No. 3 behind Millennial Media.

Still, MoPub's findings suggest that there are some ways in which Apple is beating Google at its own game.

As one of the most dominant Internet companies ever, Google has made a habit of driving strong returns for its shareholders. However, like many other web companies, it's also struggling to adapt to an increasingly mobile world. Despite gaining an enviable lead with its Android operating system, the market isn't sold. That's why it's more important than ever to understand each piece of Google's sprawling empire. In The Motley Fool's new premium research report on Google, we break down the risks and potential rewards for Google investors. Simply click here now to unlock your copy of this invaluable resource.


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  • Report this Comment On April 18, 2013, at 9:23 PM, wjcoffman wrote:

    Apple as a growth stock is done. If you buy it then recognize it as such and consider it for a dividend payer if at all.

    No Position in AAPL.

  • Report this Comment On April 20, 2013, at 12:21 PM, foolpersonified wrote:

    Steve Jobs recommended Tim Cook - Steve was not an " Idiot"

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