05 May 10

Apple iAd and the future of mobile advertising

by Laura Fenton, Trainee Planner/Buyer

With around 200,000 apps in the Apple store, the sheer number available means that the majority of developers make very little money from their applications, even if they are paid for downloads.

The introduction of Apple iAd will aid in keeping apps free for users by ensuring developers are able to make money through advertising, whilst also helping to significantly improve the quality and functionality of mobile Apple apps as a result of these newly available revenue possibilities.

For those not familiar with Apple’s recent announcement, iAd is a rich media platform for mobile, which will deliver ads in-app. Keeping the user’s ad experience within the app itself, rather than redirecting to an advertiser’s site should encourage ad interactivity without the fear of being directed away from the app being used. To be rolled out this summer, Apple has now placed itself head to head with Google in the mobile advertising sphere.

Whilst mobile ads have generally been pretty restricted in the creativity department, advertising through iAd can comprise of anything (be it video, interactive display ads, downloads etc) - the only limitation being what Apple devices are able to handle as a product. In addition to this, there will be the ability to tailor mobile advertising to each individual user’s needs and interests by using information taken from apps purchased or the physical location of the user.

If iphone users do indeed spend over 30 minutes a day using apps (according to Apple boss Steve Jobs at the launch of iAd), there should be a real interest from advertisers in the in-app ads for mobile. The integration of iAd will importantly give brands the opportunity to create new rich media user experiences within the mobile arena, outwith their own existing sites and apps. The uptake of OS4 updates on apple mobile devices, necessary for iAd compatibility, will however be something to watch in the summer.

The launch of iAd clearly indicates Apple’s focus on mobile display advertising and its belief in the continuing success of apps as part of the mobile user experience. This very much contrasts with Google’s emphasis on the importance of new and improved web browsers, giving users access to the entire internet.

Which vision wins out is anyone’s guess, but one thing we can look forward to is the innovative creativity and significant shift in mobile advertising bound to take place over the coming months.