Apple is going after a piece of the $100 billion mobile advertising market and setting up an even deeper rivalry with Google.
According to a story from The Verge on Wednesday, Apple will “start showing search ads for apps in its iOS App Store search results for the first time.” The news stemmed from an interview with Phil Schiller, Apple’s senior vice president of worldwide marketing.
To date, mobile search has largely been a ported version of desktop search, with users going to Google and typing in some keywords. With more mobile activity taking place in apps, traditional search loses relevance on smartphones.
Two-thirds of app downloads start with searches in the App Store.
Considering iPhones have over 1.5 million available apps, discovery is almost impossible for independent developers. Adding an ad-based search component gives developers a way to pay for access to consumers. Perhaps more importantly, it gives Apple a new way to make money with iPhone sales slowing and the company putting a greater focus on software and services.
Spending on mobile ads will surge 48 percent this year to $101.4 billion, according to eMarketer. Data from Net Market Share shows that in search on phones and tablets, Google controls 95 percent of the global market.