Analyst: iAd play is 'ambitious, slick' but faces challenges
TweetFollow Us on Twitter

Analyst: iAd play is 'ambitious, slick' but faces challenges

Eden Zoller, Ovum’s principal analyst, says Apple's iAd service is ambitious and slick but it still faces challenges before it can corner the market, not just from Google but from the complexity of video based in-application advertising.

“As Madison Avenue predicted, Apple has launched itself into the one mobile market from which it was absent, advertising," Zoller says. "Thursday at the iPhone 4.0 launch it announced its play for this market, the iAd platform. Steve Jobs reckons there will soon be around 100 million Apple devices on the market and that most of people’s mobile activity will be dominated by applications, where they will spend around 30 minutes a day. According to Jobs, if 10 ads were to appear on each device per day this would make for one billion ad impressions daily. The potential revenue from this scenario could be substantial."

The iAd platform supports in-application advertising and will span the iPhone, iPod touch and newly launched iPad. The iAd platform, built on the back of Quattro Wireless that Apple acquired in January for US$275 million, will support full-screen video and other interactive advertising formats built into applications, which is appealing to brands.

"But the danger with this level of integration is that unless in-app ads are extremely well designed and targeted, they will be super intrusive and turn users off," Zoller says. "This is a tall order for agencies to get right."

Mobile advertising does present Apple with a potentially big revenue opportunity but in some respects it had to introduce a mobile advertising proposition to bolster its application ecosystem, he adds. The price of paid applications is falling and the overall proportion of free to paid applications is increasing. Developers need new revenue incentives and this is another reason why advertising is so important to Apple. Under the business terms announced by Apple, developers will receive 60% of the iAd revenues generated by their application.

Steve Jobs is positioning his in-app advertising as a new category that is different from other formats such as search and online advertising in general. This is a little disingenuous as although in-app advertising is small it's not new, and it is well understood that mobile is different environment from online, according to Zoller.

"Jobs also made much of how the emotional engagement of TV/video and the interactivity of the web are the two most desirable elements for both advertisers and users, but have never come together, especially on mobile," he says. "Cue Apple, which will bring these elements together through the iAd experience. This is classic, clever Apple marketing which pushes the company’s innovation around the user interface to the forefront of mobile adverting. Apple is a genuine leader here but this should not blind us to the fact that rich video is a costly, complex format to deliver."
The analyst thinks Apple will do a good job of addressing the complexity of in-app advertising and has an ecosystem that puts it in a leading position. It has a fast growing base of devices -- Jobs says around 50 million iPhones have sold, and then alongside this is the iPod touch and new iPad. Apple has the largest application store on the market with 185,000 apps and 4 billion downloads to date.

Zoller says the counterpoint to this is that Google Android devices are picking up and Google is a far more experienced mobile advertising player than Apple, with a wider portfolio than just in-app advertising. Google’s ad solutions aren't fancy but they are cost effective for advertisers with an easy, self-serve interface, he adds.

"It has also been given a strong boost in mobile advertising through the $750 million acquisition of AdMob, one of the largest mobile advertising networks in the industry," Zoller says. "Google has made a show of welcoming Apple’s move into mobile advertising, and in this instance Google might actually mean it as it is hoping Apple’s push into mobile advertising will weaken the FTC argument for blocking its takeover of AdMob. With or without Admob, Google will face stiff competition from Apple but others will feel the pain more, for example rival device platform/app store players like Nokia and Microsoft and mobile operators pursuing their own mobile advertising strategy."

 

Community Search:
MacTech Search:

Software Updates via MacUpdate

Thunderbird 45.7.1 - Email client from M...
As of July 2012, Thunderbird has transitioned to a new governance model, with new features being developed by the broader free software and open source community, and security fixes and improvements... Read more
Opera 43.0.2442.991 - High-performance W...
Opera is a fast and secure browser trusted by millions of users. With the intuitive interface, Speed Dial and visual bookmarks for organizing favorite sites, news feature with fresh, relevant content... Read more
OnyX 3.2.4 - Maintenance and optimizatio...
OnyX is a multifunction utility that you can use to verify the startup disk and the structure of its system files, to run miscellaneous maintenance and cleaning tasks, to configure parameters in the... Read more
VueScan 9.5.71 - Scanner software with a...
VueScan is a scanning program that works with most high-quality flatbed and film scanners to produce scans that have excellent color fidelity and color balance. VueScan is easy to use, and has... Read more
Slack 2.5.1 - Collaborative communicatio...
Slack is a collaborative communication app that simplifies real-time messaging, archiving, and search for modern working teams. Version 2.5.1: New The way we load teams you don't view often has been... Read more
HandBrake 1.0.3 - Versatile video encode...
HandBrake is a tool for converting video from nearly any format to a selection of modern, widely supported codecs. Features Supported Sources VIDEO_TS folder, DVD image or real DVD (unencrypted... Read more
Vivaldi 1.7.735.46 - An advanced browser...
Vivaldi is a browser for our friends. In 1994, two programmers started working on a web browser. Our idea was to make a really fast browser, capable of running on limited hardware, keeping in mind... Read more
Vivaldi 1.7.735.46 - An advanced browser...
Vivaldi is a browser for our friends. In 1994, two programmers started working on a web browser. Our idea was to make a really fast browser, capable of running on limited hardware, keeping in mind... Read more
HandBrake 1.0.3 - Versatile video encode...
HandBrake is a tool for converting video from nearly any format to a selection of modern, widely supported codecs. Features Supported Sources VIDEO_TS folder, DVD image or real DVD (unencrypted... Read more
Slack 2.5.1 - Collaborative communicatio...
Slack is a collaborative communication app that simplifies real-time messaging, archiving, and search for modern working teams. Version 2.5.1: New The way we load teams you don't view often has been... Read more

Mudd Masher arrives this week
Atooi Games, the minds behind Totes the Goat and Mutant Mudds, have a new game in the works -- Mudd Masher. The game, a hybrid of the independent studio's first two titles, is expected to launch this week on March 2. [Read more] | Read more »
The best sales on the App Store this wee...
The App Store has quite an exciting lineup of discount games this week that range across a variety of genres. It's a great opportunity to catch up on some of the premium games you may have been holding off on -- and some you can even grab for free... | Read more »
The best new games we played this week
Ah, here we are again at the close of another busy week. Don't rest too easy, though. We had a lot of great new releases in mobile games this week, and now you're going to have to spend all weekend playing them. That shouldn't be too much of a... | Read more »
Rollercoaster Tycoon Touch Guide: How to...
| Read more »
Rabbids Crazy Rush Guide: How to unlock...
The Rabbids are back in a new endless running adventure, Rabbids Crazy Rush. It's more ridiculous cartoon craziness as you help the little furballs gather enough fuel (soda) to get to the moon. Sure, it's a silly idea, but everyone has dreams --... | Read more »
Tavern Guardians (Games)
Tavern Guardians 1.0 Device: iOS Universal Category: Games Price: $2.99, Version: 1.0 (iTunes) Description: Tavern Guardians is a Hack-and-Slash action game played in the style of a match-three. You can experience high pace action... | Read more »
Slay your way to glory in idle RPG Endle...
It’s a golden age for idle games on the mobile market, and those addictive little clickers have a new best friend. South Korean developer Ekkorr released Endless Frontier last year, and players have been idling away the hours in the company of its... | Read more »
Tiny Striker: World Football Guide - How...
| Read more »
Good news everyone! Futurama: Worlds of...
Futurama is finding a new home on mobile in TinyCo and Fox Interactive's new game, Futurama: Worlds of Tomorrow. They're really doing it up, bringing on board Futurama creator Matt Groening along with the original cast and writers. TinyCo wants... | Read more »
MUL.MASH.TAB.BA.GAL.GAL (Games)
MUL.MASH.TAB.BA.GAL.GAL 1.0 Device: iOS Universal Category: Games Price: $2.99, Version: 1.0 (iTunes) Description: ENDLESS UPGRADES. CONSTANT DANGER. ANCIENT WISDOM. BOUNCY BALLS. Launch Sale, 40% OFF for a very limited time!!! MUL.... | Read more »

Price Scanner via MacPrices.net

27-inch 3.3GHz 5K iMac on sale for $2099, sav...
B&H Photo has the 27″ 3.3GHz 5K Apple iMac on sale for $2099.99 including free shipping plus NY sales tax only. Their price is $200 off MSRP. Amazon also has the 27″ 3.3GHz 5K iMac on sale for $... Read more
21-inch iMacs on sale for up to $111 off MSRP
B&H Photo has select 21″ Apple iMacs on sale for up to $110 off MSRP, each including free shipping plus NY sales tax only: - 21″ 2.8GHz iMac: $1189 $110 off MSRP - 21″ 1.6GHz iMac: $999 $100 off... Read more
12-inch 1.2GHz Retina MacBooks on sale for $2...
Newegg has the 12″ 1.2GHz Space Gray Retina MacBook (sku MLH82LL/A) on sale for $1349.99 including free shipping. Their price is $250 off MSRP, and it’s the lowest price available for this model.... Read more
13-inch MacBook Airs on sale for $100 off MSR...
B&H Photo has 13″ MacBook Airs on sale for $100 off MSRP. Shipping is free, and B&H charges NY sales tax only: - 13″ 1.6GHz/128GB MacBook Air (MMGF2LL/A): $899 $100 off MSRP - 13″ 1.6GHz/... Read more
9-inch 32GB Silver iPad Pro on sale for $549,...
B&H Photo has the 9.7″ 32GB Silver Apple iPad Pro on sale for $549 for a limited time. Shipping is free, and B&H charges NY sales tax only. Their price is $50 off standard MSRP for this model... Read more
13-inch 2.0GHz Apple MacBook Pros on sale for...
B&H has the non-Touch Bar 13″ 2.0GHz MacBook Pros in stock today and on sale for $100 off MSRP. Shipping is free, and B&H charges NY sales tax only: - 13″ 2.0GHz MacBook Pro Space Gray (... Read more
15-inch Touch Bar MacBook Pros on sale for up...
B&H Photo has the new 2016 15″ Apple Touch Bar MacBook Pros in stock today and on sale for up to $150 off MSRP. Shipping is free, and B&H charges NY sales tax only: - 15″ 2.7GHz Touch Bar... Read more
12-inch Retina MacBooks on sale for $1150, $1...
B&H has 12″ 1.1GHz Retina MacBooks on sale for $150 off MSRP. Shipping is free, and B&H charges NY sales tax only: - 12″ 1.1GHz Space Gray Retina MacBook: $1149 $150 off MSRP - 12″ 1.1GHz... Read more
Apple restocks refurbished 11-inch MacBook Ai...
Apple has Certified Refurbished 11″ MacBook Airs (the latest models recently discontinued by Apple), available for up to $170 off original MSRP. An Apple one-year warranty is included with each... Read more
Apple Park Opens to Employees in April With T...
Apple has announced that Apple Park, the company’s new 175-acre campus, will be ready for employees to begin occupying in April. The process of moving more than 12,000 people will take over six... Read more

Jobs Board

*Apple* Wireless Lead - T-ROC - The Retail O...
…of knowledge in wireless sales and activations to the Beautiful and NEW APPLE Experiencestore within MACYS. THIS role, APPLE Wireless Lead, isbrandnewas MACYS Read more
Manager *Apple* Systems Administration - Pu...
Req ID 3315BR Position Title Manager, Apple Systems Administration Job Description The Manager of Apple Systems Administration oversees the administration and Read more
*Apple* Retail - Multiple Positions - Apple,...
Job Description: Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, Read more
*Apple* Retail - Multiple Positions- Chicago...
SalesSpecialist - Retail Customer Service and SalesTransform Apple Store visitors into loyal Apple customers. When customers enter the store, you're also the Read more
Manager *Apple* Systems Administration - Pu...
Req ID 3315BR Position Title Manager, Apple Systems Administration Job Description The Manager of Apple Systems Administration oversees the administration and Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.