Apple Inc. is losing momentum to Google Inc. on the operating system front, but for the time being it appears to be more than making up for it on the advertising front. The maker of all things iOS, including the recently launched iAd mobile advertising platform, is projected to end the year with 21% of the market, according to new estimates from IDC, which were provided to Businessweek.com. Keep in mind that iAd only launched a couple months ago and will effectively end the year with only six months on the clock.
Such a meteoric rise from a new entrant will always have a lasting effect on the incumbents. As such, IDC expects Google’s share of the market to drop to 21%, from 27% last year. Microsoft Corp. is projected to slide to 7% from 10%, despite its forthcoming Advertising Exchange for Mobile alongside its Windows Phone 7 operating system refresh. Yahoo Inc.’s share will drop to 9% from 12% last year and Nokia Corp. will decline to around 2% from 5%, according to IDC. In a market expected to double to almost $500 million in the United States alone this year, Apple said it had $60 in commitments from advertisers in marketers almost a full month before iAd launched July 1. And since then, that number of agreements has doubled, an Apple spokeswoman told Businessweek.com.