Apple launches ad-blocking tactic to overtake Google
Apple Inc. has launched its own ad-blocking tactic in a bid to overtake rival Google Inc., which generates most of its earnings from ad sales.
Apple has recently allowed developers to make ad-blocking extensions for Safari on iOS 9. There have been concerns that Google's mobile ad revenue could suffer greatly after the launch of iOS 9, when several ad blockers began to rise, according to The Motley Fool.
Three months ago, instapaper developer correctly predicted that Apple would implement ad-blocking features on iOS 9. He likened Apple's move to an "atomic bomb" that could easily become a big rush for developers, since ads are the bread and butter of Internet portals, Invest Correctly reports.
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Just this June, Apple chief Tim Cook accused Google of trying to monetize all the information it gathers from users with targeted ads. Cook said consumers should never trade "free services" for their privacy and security, the report relays.
After Cook released that statement, Apple began its move to exclude Google services from its ecosystem. The firm began enabling ad-blockers on mobile Safari, backing up content to the iCloud, and implemented mandatory use of Apple Maps on CarPlay.
Despite Apple's seemingly consumer-centered intention in launching its ad-blocking tactics, there are some who see the move as anti-competitive. Its closed ecosystem forces users to be locked into Apple hardware and software products. Because Apple said it will not block ads inside its apps, stories published within the Apple News app will still show ads that will help the company generate iAd revenues. The ads on mobile Safari, however, might be removed, the report explains.
Goldman Sachs analysts say 75 percent of Google's mobile ad revenues in 2014 came from iOS. This number is equivalent to 14 percent of its total revenue last year. This means Apple's ad-blocking tactic will deliver a crippling effect to Google's revenue.
Apple's recent move to enable ad-blocking extensions for Safari on iOS 9 will force Google and other companies relying on display ads to come up with less intrusive ads; or else, their mobile ad revenues could continue dropping as users block their ads.
