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Apple just pulled a facebook

By April 8, 20102 Comments2 min read

With the big iPhone OS 4.0 announcement today, one of Apple’s big announcements is iAds, their mobile ad network (which was built from their acquisition of Quattro a few months ago). So why did they pull a facebook today? In what analysts will be calling a truly fucking brilliant move in a few months, they managed to do exactly what facebook is doing. Selling INTERNAL traffic redirection.

See facebook has been doing this for a while, with their ridiculously profitable ad network that sells ads to their fan pages and apps. So Facebook charges private companies to move traffic from one part of their site to another. Traditionally in online ads you are paying to move traffic from Site A to Site B, not Page1 on Site A to Page2 on Site A. So Facebook increases traffic/pageviews on its site while getting suckers to pay for it. Brilliant.

Today Apple announced they are doing effectively the same thing. Using their iAds network, which was borne of Quattro, they are replacing in app ads for many apps with new smarter suggestions to other apps in iTunes. So you’re getting internal traffic redirected, and apple monetizing the whole bit. Ge-ni-us.

So Apple’s stock is at $240/share right now. These new updates won’t affect their earnings for another 2 quarters at least, will have to check back in 6 months.