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How Much of a Boost Will iAd Get from the Verizon iPhone? And How Much of a Hit for Android?

Without a doubt the introduction of the Verizon iPhone is significant - although perhaps not quite the game-changer that it could have been if it had come to market sooner. Two areas, however, in which it will clearly have a strong impact are the mobile ad market - particularly Appleā€™s iAd ecosystem - and the intense rivalry between the iPhone and Android mobile platforms.

Mobile Ads Benefit

Simple put, the new iPhone users mean more eyeballs for ads in the Apple network as well as the third party mobile ad networks such as Greystripe and AdMob. "For advertisers, this means that they will be able to reach 50 to 70 percent more of their target customers," says Michael Chang, CEO of mobile ad network Greystripe. (via ClickZ). He predicts iPhone ad impressions across his network will double in 2011.

Its introduction will also give developers that much more incentive to develop for the iPhone platform, eConsultancy notes.

How Many Eyeballs?

Estimates vary as to how many new customers a Verizon iPhone will pull in. The range appears to be between nine million to 12 million, a huge boost, according to the Wall Street Journal.

Checkmate for Android?

Indeed the numbers are expected to be significant enough to be a threat to Android, according to Bloomberg. The question is not how many AT&T subscribers will defect to Verizon, but how much market share Android will lose, says Kaufman Bros. analyst Shaw Wu. It is possible that Verizon may even downplay its Android line of devices as it markets its iPhone.

"We believe iPhone on Verizon will be the first true test for Android whether its share gains are real or just a temporary phenomenon due to weak competition," he writes in a client note.


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