Please ensure Javascript is enabled for purposes of website accessibility

Is Apple Beating Google at Its Own Game?

By Evan Niu, CFA - Apr 18, 2013 at 6:30PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The dichotomy between Apple and Google has existed since the dawn of time. You may have thought it impossible for Apple to beat Google at advertising. You'd be wrong.

Apple (AAPL 2.32%) has devices with integrated hardware and software. Google (GOOGL 1.88%) 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.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Apple Inc. Stock Quote
Apple Inc.
AAPL
$143.78 (2.32%) $3.26
Alphabet Inc. Stock Quote
Alphabet Inc.
GOOGL
$2,155.85 (1.88%) $39.75

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
332%
 
S&P 500 Returns
118%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/26/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.