Apple iAd is not the only game in town when it comes to mobile advertising, a fact that marketers are increasingly aware of.

Apple?s mobile advertising solution received a lot of attention when it was introduced in the summer of 2010, just as almost any Apple product receives these days. However, the evidence increasingly suggests that some of the other big players in the space ? including Google?s AdMob and Millennial Media ?and not Apple are setting the ground rules in mobile advertising.

?The limitations of the iAd platform haven't really changed since day one,? said Eric Harber, chief operating officer at Hipcricket, Kirkland, WA.

?You're limiting your reach to users on iOS devices -- missing out entirely on the fast-growing Android user base,? he said.

?Additionally, Apple maintains a high level of creative control on iAd campaigns that some advertisers aren't willing to relinquish.?

Apple in third place
A report in the Wall Street Journal this week pointed to new research from IDC showing that Apple?s estimated share of U.S. mobile display ad revenue will total 15 percent this year while Google?s has a 24 percent share and Millennial Media a 17 percent share.

This is in dramatic contrast to last year, when Apple and Google were tied for first place, with each company capturing a 19 percent market share.

"What's most interesting about the news today is that it is clear that mobile is very quickly taking its rightful place in the media and marketing world as a very powerful channel," said Greg Stuart, CEO of the Mobile Marketing Association, Boulder, CO. "Just as interesting is that independent players have captured significant market share and are exhibiting real leadership in building the industry and delivering competitive solutions to marketers."

Overall, mobile display ad revenue is expected total $630 million this year.

Apple?s declining market share reflects a variety of issues that marketers have with iAd, including its forced pricing structure, low fill rates and weak analytics.

In response to the slow movement on iAd, Apple has reportedly been lowering iAd prices all year. Initially, marketers were required to commit to spend at least $1 million, which was dropped to $500,000 and then $400,000. 

Apple is also reportedly negotiating fees for consumer interaction with ads, with advertisers paying $10 for every thousand views and $2 for every tap.

Perhaps one of the more interesting pieces of news in the Wall Street Journal report is that Apple is inviting senior marketing executives to its headquarters for information sessions on mobile marketing.

This is reportedly one of the first times Apple has tried this approach with advertisers.

?Mobile advertising continues to be one of the fastest-growing parts of Hipcricket's business - it's certainly an important element of mobile campaigns, but it is by no means the only one,? Mr. Harber said.

?It's critical to create campaigns that drive positive user experiences ?beyond the click? that lead to permission-based databases and monetizable remarketing opportunities," he said.

Other mobile ad solutions are gaining not only because they offer more competitive pricing but also because, as smartphone penetration grows, the scale of mobile advertisings campaigns is growing and marketers are looking to be able to reach an audience across a wide array of devices, not just iOS products. 

Google has been a big beneficiary of these developments

?I would imagine that any changes made to iAd pricing, including minimum ad buys, is a result of competitive market pressures,? said Linda Barrabee, research director at NPD Group?s Connected Intelligence, Cambridge, MA.

?During its third quarter earnings call in October, Google offered additional visibility into its mobile advertising performance and growth, when the company said it was on track to generate $2.5 billion annually, up 2.5X times from a year ago when the company provided its $1 billion annual run rate figure,? she said.

Final Take
Chantal Tode is associate editor on Mobile Marketer, New York