Monday, April 19, 2010

Apple's iAds - Further Analysis and Predictions

After I wrote my last blog post about Apple's iAd mobile advertising program, I came across a link to Steve Jobs' 10 minute iAd introduction. I have to admit, I was blown away with the presentation and, while it confirmed many of my thoughts expressed in my last post, it also helped me crystallize the following implications and predictions for app developers/publishers, brand marketers and direct-response, transaction-based advertisers.

iAd Value for App Developers & Content Publishers
  • New revenue stream for existing their apps through the 60/40 ad media revenue share with Apple.
  • New source of business for developers through a new iAd development service.
  • A better advertising channel to market their own Apps.
  • Development tools that are "very easy" to use, according to Mr. Jobs.
  • Simple & easy process - Apple sells and serves all iAds.
iAd Value for Brand Marketers
  • Superior digital creative - iAds offer more interactivity than TV ads & more emotion than Display ads.
  • Better user experience - according to the presentation, navigating an iAd is "very simple".
  • Innovation value - brands can ride the "cool" and "innovative" halo from Apple.
iAd Value for Direct Response & E-commerce Advertisers
  • This lies with Apple's growing option value.  I predict Apple will launch iStore which connects to merchant and travel back-ends via APIs and allow the user to transact via iTunes, just as they do currently with songs, movies, books and apps. Jobs mentioned a "shopping list" for Target - what does he mean?  Is this a new form of shopping cart that Apple is working on?
  • When will Apple launch iWord - a DR ad solution tied to App Store inquiry targeting?
Net, net...the winners: Apple, developers and publishers, brand marketers.  And, the losers: Google, Microsoft, Adobe.  

Do you agree?  Please share your comments.