iAd – The New Face Of Mobile Advertising

Posted by Deepa John on Thursday, August 19th, 2010

According to eMarketer forecasts, the mobile ad market is expected to double itself, growing from $7 billion in 2009 to $14 billion in 2011. By the end of 2010, mobile multimedia ad spending alone is projected to increase by 67%. Little wonder computer giant Apple is hoping to reap benefits out of this ‘billion dollar opportunity’. The company has come up with its own mobile advertising network and says it will take nearly a 50% share of mobile ads in the second half of 2010!

The story began with Apple’s acquisition of mobile ad platform, Quattro Wireless, back in Jan 2010. Soon after in April, the company announced iAd, a new interactive ad network for iOS devices. The network went live just last month. Interestingly, there have already been reports of the iAd platform generating as much as $1400 in a single day.

“The emotion of TV, the interactivity of the web, the power of mobility” – this is how Apple defines the iAd. iAds can delivers interactive and video content ads without taking viewers out of the application they are currently using. The Toy Story 3 and other demo ads built by Apple beautifully illustrate the variety of interactive options possible.

Having said that, let’s look at the major ‘takeaways’ for the different segments.

For the average iPhone user:

  • Mobile ads can be more enjoyable and less frustrating. Unlike in browser-ads, the user is not taken to a different web page; he can always get back to his current app. easily and quickly.
  • An iAd ad. opens up in a app-like environment and taps into all major OS features of the ‘ phone. Users can therefore buy iTunes content from within the ad., share branded content across social networks or save branded images as wallpaper.

For the app. developer:

  • With 60% of the advertising revenue coming to them, developers might find it an interesting way to monetize their apps. while keeping them free.
  • Moreover, developers can purchase iAd advertising to promote their own apps. to millions of users across the iAd Network. iAd JS and supporting documentation available through the iPhone Dev Center will aid developers in designing and creating high-impact, motion-rich ads.

For the advertiser:

  • iAd holds immense marketing potential with its reach of over millions of iPhone and iPod touch users around the world.
  • The kind of integrated experience the iAd promises could result in significantly enhanced viewer-ship and more effective advertising.
  • Standard targeting options like demographics, movie and television genre interests, location, application preferences, etc., could mean the ad. is delivered to consumers most likely to be motivated by the message.

And finally for Apple:

  • As the company that hosts and sells this new kind of ads., it is definitely a source of revenue.
  • It is also a novel approach to providing incentives for App. store development.

However, the biggest truth of all is that iAd is a subtle attack on Flash and a more direct strike at Google’s AdSense from the house of iOS devices.

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One Response to “iAd – The New Face Of Mobile Advertising”

  1. Gopikrishnan says:

    Social Web and Mobile platform is yet to explode in India to be the way to go. We are still seeing people testing the water as the perception is that the mobile community of India is just the wireless phone community who uses phone to just send messages and to call. Its a vicious circle. People want good reason to graduate from this kind of use. Which require other domains to open up their services via the mobile platform. iPhone being such a powerful platform is yet to gain popularity in India for two major reasons. India specific convincing apps are lacking. The people whom Apple has tied up with are more of volume focused and do not want to create a market, rather explore the existing one. It has to change. And will, pretty soon.

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