Jumptap tries to capitalize on AdMob confusion

The ad network is offering new customers 100 per cent of their advertising revenue, up to $US4 million

Hoping to make the most of a dispute between Google and Apple, Jumptap is offering developers who sign onto its mobile ad network the chance to collect 100 percent of their advertising revenue for a limited time.

After Google bought AdMob in May, Apple changed its terms of service in a way that prohibits companies from collecting iPhone data if they are not independent and if their primary business isn't serving mobile ads. While Apple hasn't yet cut off AdMob, AdMob is violating those terms since it is now owned by Google and collects information from iPhone users for its customers.

"There is concern about the uncertainty that Apple seems to create with its terms of service," said analyst Greg Sterling of Sterling Market Intelligence. "It's an unknown variable that hasn't been clarified."

Jumptap hopes to take advantage of that. "It's a moment of opportunity here, that they perceive some uncertainty around whether AdMob will still be able to serve to iPhone developers," he said.

Jumptap has set aside $US4 million from which it will pay new developers and publishers 100 percent of the advertising revenue they make through the end of 2010 or until the fund is empty, whichever comes first. An ad network like Jumptap would typically collect a share of its customers' advertising revenue.

Jumptap said it launched the program in response to developers and publishers who are at risk of losing revenue after being caught in the crossfire between Google and Apple.

While AdMob is a larger network than Jumptap, it's unclear which might earn more for an application developer, Sterling said. Jumptap has always presented itself as a premium ad network, which could translate into higher revenues for customers even if the network is smaller.

Jumptap also markets the fact that advertisers can use its network to run ads on a variety of devices including iPhones, Android devices and BlackBerry phones.

Application developers could potentially sign up for both networks before deciding whether to switch.

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Tags smartphonesinternetGoogleAppleadvertisingPhonesconsumer electronics

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Nancy Gohring

IDG News Service
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