• by Mark Walsh  @markfwal, June 4, 2010

This week Google and Apple were all about "openness" as they prepared to plunge more seriously into mobile advertising. Assuming an embrace of openness in operations serves the dual purpose of keeping application developers happy and antitrust regulators at bay.

Two weeks after the Federal Trade Commission cleared its AdMob acquisition, Google Thursday announced that its AdSense for Mobile Apps program would begin allowing publishers to work with third-party ad mediators such as AdWhirl (owned by AdMob), Nexage, Mobclix and AdMarvel. These exchanges allow developers to work with other mobile ad networks to optimize and fill ad inventory.

"We believe this also shows our commitment to develop the mobile advertising ecosystem by ensuring that the most optimal ad is shown to users, and enabling our AdSense partners to earn more regardless of which networks they use," stated a Google post about the move.

That step came only a day after Google added mobile apps to search results on Android-based devices and the iPhone, giving developers a new avenue for people to find their apps. Notice that the app search capability also isn't limited to Google's own Android platform, but extends to the signature device of mobile rival Apple. Results also link to both the Android Market and iPhone App Store page.

After Apple launched its iAd platform in April and issued new restrictions on the use of third-party software tools in an updated developer agreement, many questions arose on how closed the company would make its new mobile ad system. Reports indicated the Justice Department and FTC might be interested in looking into Apple's revised rules for developers on antitrust grounds.

But at the All Things Digital D8 conference this week, Apple CEO Steve Jobs insisted Apple didn't want to block other ad networks from the iPhone or iPad. "We're not banning other advertisers from our platform," he assured.

But he still has a problem with outside analytics firms adding tracking software to apps. Apple's updated developer agreement bars developers from sharing information with third-party sources, which could include ad analytics providers. The focus of Jobs' ire was one particular firm -- Flurry -- which earlier this year used its software to offer a sneak peek into Apple's internal iPad-testing.

Jobs suggested Apple would be willing to talk to analytics firms when his anger over that incident recedes. "But it's not today," he said. The company also isn't backing off its position against the use of Flash in the iPhone and iPad, launching a showcase page for HTML5, the programming language preferred by Apple.

Whether the government decides to go after Apple for blocking Flash remains to be seen. But Krishna Subramanian, CEO of mobile ad exchange Mobclix, said developers were at least more reassured by Jobs' comments that the iAd network wouldn't be their only option for monetizing apps on the Apple devices. "There was a lot of concern top developers had about how much money they could make with iAd... so I think this alleviated a lot of those concerns," he said.

Both Google and Apple realize developers have to be able to profit from their platforms, which means offering more than one way to monetize usage. "They know developers have to make money," said Subramanian.