- Category: Our Blog
- Written by Brent Williams
Under the shadow of recent product announcements, like the iPad and new 4th generation iPhone, a Apple have released a sneaky new product called iAd. This is more than just a new product, it's a new type of advertising platform aimed at Apple's mobile devices. This not coincidentally includes, the above iPad and iPhone as well as the iPod touch. Although iAd lacks the glamour of these other products, its effect on the industry is likely to be just as profound.
Here's a quick look at what it does, or rather, what it will mean. iAd is an application that sits within an application. I won't go into the technical mumble gumble but explain what it means. Developers of iphone (and ipad) apps – of which there are hundreds of thousands – will have the ability to earn additional revenue from what are otherwise low priced or free applications.
The consequences of this, there will be a large increase in killer ap’s, (powerful, productive and innovative applications) written for Apples mobile platform, resulting in even greater hordes of people switching to apple products. Following this horde will be the mass migration of advertising spend exclusively targeting these users.
Secondly it will make the iphone an even more attractive platform from which corporations can, and will, develop their own spealised applications. These could be simple aps like customer service or ecommerce or be of the more innovative type like VaxTrak, developed by Kiwi company Ceiba for Novartis (which tracks vaccinations for children). With iAd companies will be able to stage highly target promotions and campaigns.
iAd supports ads that can offer Full-screen in-line video, wallpapers, games, interactive maps, in-ad app or iTunes content downloads, social networking tools, and more.
Like Google (adwords), Apples advertising platform is highly intelligent. Ads can be targeted to hit consumers along multiple dimensions such as:
- Application preferences
- Music passions
- Movie genre interests
- Television genre interests
It also offers an extensive advertising metrics to report effectiveness, this includes:
- Clicks (taps) and Click-through rate
- Page views and pages per visit
- Interactions (videos viewed, images viewed, etc.)
- Average time spent per ad
- Social pass-alongs
- Conversions and downloads
Industry pundits are already hailing Apple as a serious contender to Google in the growing, and increasingly important, mobile advertising market. Although the iAd platform has only just been announced, Apple has already booked $60million USD in forward orders from big brands like AT&T, Best Buy, Campbell Soup Company, Chanel, Citi, DirecTV, Geico, GE, JCPenney, Liberty Mutual Group, Nissan, Sears, State Farm, Target, Turner Broadcasting, Unilever and Walt Disney Studios.
Apple says this figure represents almost half of the total forecast US mobile ad spend for the second half of 2010. Also bear in mind, Apple is approaching 100 million in unit sales of its mobile devices. If the average user spends 30 minutes a day using apps, which is Apple’s estimate, at an average of 10 apps, this means that a reasonable estimate would be that the iAd platform could generate up to a billion ad impressions per day. Expect iAd to become an important platform in future campaign strategies.
Digital Director - adplus communications