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.

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5 comments:

  1. Thanks. Do you agree with this prediction? Is the hotel industry ready for this?

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  2. Here's the statement i referred to above: "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?"

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  3. Ready or not, it is coming...I think the Hotel industry is woefully unprepared for the iStore...just like they were unprepared for e-commerce is the late nineties, with I predict, similar results...consumers will move away from traditional booking channels (in the nineties this meant travel agents and 1-800 #'s, in 2010 this means branded web sites) to the new, more empowering channel. The web used to be the place to be. Now, consumer empowerment is happening in the social/mobile space and most intensively on Apple platform. [And as I have pointed out in the my last posting: The Next Big Thing (http://wp.me/pR96b-2C), Apples vision when fully realized takes on the entire information/entertainment domain]. Those brands and TPIs that ride the innovation curve will have a significant tactical advantage over their peers who continue to bet on the web as the future of e-commerce.

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  4. dcoler - that was fast! Looks like you were right. Travel disintermediation is happening. Apple files iTravel patent http://bit.ly/d2RJIa and Google+ITA = Troogle or Google Travel - http://bit.ly/9oTjzW. Are travel suppliers, OTAs and GDS players up to the task?

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  5. Not by a long shot...the key question for Apple will be around supply...can Apple offer equal or better terms to hotels for access to inventory?

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