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

Scrivener 3.0 - Project management and w...
Scrivener is a project management and writing tool for writers of all kinds that stays with you from that first unformed idea all the way through to the first - or even final - draft. Outline and... Read more
SuperDuper! 3.0.1 - Advanced disk clonin...
SuperDuper! is an advanced, yet easy to use disk copying program. It can, of course, make a straight copy, or "clone" -- useful when you want to move all your data from one machine to another, or do... Read more
Parallels Desktop 13.2.0 - Run Windows a...
Parallels allows you to run Windows and Mac applications side by side. Choose your view to make Windows invisible while still using its applications, or keep the familiar Windows background and... Read more
VueScan 9.5.92 - 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
iFinance 4.3.4 - Comprehensively manage...
iFinance allows you to keep track of your income and spending -- from your lunchbreak coffee to your new car -- in the most convenient and fastest way. Clearly arranged transaction lists of all your... Read more
jAlbum Pro 15.0 - Organize your digital...
jAlbum Pro has all the features you love in jAlbum, but comes with a commercial license. You can create gorgeous custom photo galleries for the Web without writing a line of code! Beginner-friendly... Read more
jAlbum 15.0 - Create custom photo galler...
With jAlbum, you can create gorgeous custom photo galleries for the Web without writing a line of code! Beginner-friendly, with pro results - Simply drag and drop photos into groups, choose a design... Read more
Duet 1.6.9.3 - Use your iPad as an exter...
Duet is the first app that allows you to use your iDevice as an extra display for your Mac using the Lightning or 30-pin cable. Note: This app requires a $14.99 iOS companion app. Version 1.6.9.3:... Read more
Duet 1.6.9.3 - Use your iPad as an exter...
Duet is the first app that allows you to use your iDevice as an extra display for your Mac using the Lightning or 30-pin cable. Note: This app requires a $14.99 iOS companion app. Version 1.6.9.3:... Read more
iExplorer 4.1.10 - View and transfer fil...
iExplorer is an iPhone browser for Mac lets you view the files on your iOS device. By using a drag and drop interface, you can quickly copy files and folders between your Mac and your iPhone or... Read more

Latest Forum Discussions

See All

The mobile gamer's guide to Black F...
We're starting to catch wind of some exciting deals in the mobile gaming space for Black Friday. There are big discounts on mobile phones and accessories cropping up already, so you might want to get a move on things ahead of the big day. It's... | Read more »
The best pre-Black Friday deals - Novemb...
Black Friday will soon be upon us, but online retailers are already getting a headstart on the steep discounts. Don't wait until Friday—you'll find some pretty good deals all over the internet without waiting in lines or competing with other... | Read more »
Mighty Battles guide - how to build a so...
Mighty Battles, the latest title from Hothead Games, is set to take the App Store by storm. The game puts a welcome twist on lane battlers, adding FPS elements to spice things up a bit. You'll collect cards to put your own military unit to gether,... | Read more »
Rules of Survival guide - how to be the...
The PUBG craze makes its way to mobile, with more and more battle royale games debuting on iOS and Android. Rules of Survival joins the ranks of mobile PUBG-likes, offering a classic battle royale experiences that doesn't vary too much from its... | Read more »
The best new games we played this week -...
The weekend is upon us friends, and it's time to take a look back and reflect on all of the wonderful games we've played over the past few days. This week was jam packed with new releases. There were some big, long awaited launches, some fun... | Read more »
Lineage II: Revolution guide - tips and...
At long last, Lineage II: Revolution has now come to western shores, bring Netmarble's sweeping MMORPG to mobile devices. It's an addictive, epic experience, but some of the systems in the game can be a bit overwhelming. Here are a few tips to help... | Read more »
A Boy and His Blob (Games)
A Boy and His Blob 1.0 Device: iOS Universal Category: Games Price: $4.99, Version: 1.0 (iTunes) Description: | Read more »
Fight terrible monsters and collect epic...
Released on Western markets early last month, Dragon Project, created by Japanese developer COLOPL, brings epic monster hunting action to mobile for the very first time. Collect a huge array of weapons and armor, and join up with friends to fight... | Read more »
I Am The Hero (Games)
I Am The Hero 1.0 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0 (iTunes) Description: I Am The Hero is a pixel art, beat 'em up, fighting game that tells the story of a "Hero" with a glorious but mysterious past.... | Read more »
Kauldron (Music)
Kauldron 1.0 Device: iOS Universal Category: Music Price: $3.99, Version: 1.0 (iTunes) Description: Kauldron is our warmest sounding, punchiest synth yet! A completely new modeling technology, combined with carefully designed... | Read more »

Price Scanner via MacPrices.net

Save up to $180 with Apple Certified Refurbis...
Apple has Certified Refurbished 2017 13″ MacBook Airs available starting at $849. An Apple one-year warranty is included with each MacBook, and shipping is free: – 13″ 1.8GHz/8GB/128GB MacBook Air (... Read more
Black Friday deals on Apple Macs now live at...
Amazon has MacBook Pros, MacBook Airs, MacBooks, and iMacs on sale for up to $200 off MSRP for Black Friday week. Shipping is free. Note that stock of some Macs may come and go during the week, so... Read more
Black Friday pricing on Macs and iPads now av...
B&H Photo has lowered prices on many Macs, iPads, and iPad Pros as part of their Black Friday week sale. Save up to $200 on MacBooks and iMacs and up to $150 on iPads. B&H charges sales tax... Read more
Best Apple iPad deals this weekend, up to $80...
Apple resellers are offering 9.7″ iPads and 10.5″ iPad Pros for up to $80 off MSRP this weekend as part of their early Holiday and Black Friday sales: Adorama is offering new 2017 9.7″ 32GB WiFi... Read more
Early Black Friday sale: Apple iMacs for up t...
B&H Photo has 27-inch iMacs in stock and on sale for up $130-$150 off MSRP including free shipping. B&H charges sales tax in NY & NJ only: – 27″ 3.8GHz iMac (MNED2LL/A): $2149 $150 off... Read more
Apple restocks refurbished Mac minis starting...
Apple has restocked Certified Refurbished Mac minis starting at $419. Apple’s one-year warranty is included with each mini, and shipping is free: – 1.4GHz Mac mini: $419 $80 off MSRP – 2.6GHz Mac... Read more
Save on 12″ MacBooks, Apple refurbished model...
Apple has Certified Refurbished 2017 12″ Retina MacBooks available for $200-$240 off the cost of new models. Apple will include a standard one-year warranty with each MacBook, and shipping is free.... Read more
Early Holiday sale: 12″ iPad Pros for up to $...
B&H Photo has 12″ iPad Pros on sale today for up to $130 off MSRP. Shipping is free, and B&H collects no sales tax outside NY & NJ: – 12″ 64GB WiFi iPad Pro: $749, save $50 – 12″ 256GB... Read more
Holiday sale prices on Apple 13″ MacBook Pros...
B&H Photo has 2017 13″ MacBook Pros in stock today and on sale for $100-$150 off MSRP, each including free shipping plus NY & NJ sales tax only: – 13-inch 2.3GHz/128GB Space Gray MacBook Pro... Read more
Sale: 13″ MacBook Airs starting at $899, $100...
B&H Photo has 2017 13″ MacBook Airs on sale today for $100 off MSRP including free shipping. B&H charges NY & NJ sales tax only: – 13″ 1.8GHz/128GB MacBook Air (MQD32LL/A): $899, $100 off... Read more

Jobs Board

*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
Product Manager - *Apple* Pay on the *Appl...
Job Summary Apple is looking for a talented product manager to drive the expansion of Apple Pay on the Apple Online Store. This position includes a unique Read more
*Apple* Pro/Consumer Apps Support Engineer -...
…exemplify AppleCare's expert technical support paired with exceptional customer service for Apple 's software apps. This person is a problem solver, who understands Read more
Partner Marketing Manager, *Apple* Pay - Ap...
Job Summary The Apple Pay partner marketing team is looking for a Marketing Manager to develop and drive US programs. The right candidate will be passionate about Read more
*Apple* Solution Consultant - Apple (United...
# Apple Solution Consultant - Rochester, MN Job Number: 113037950 Rochester, MN, Minnesota, United States Posted: 19-Sep-2017 Weekly Hours: 40.00 **Job Summary** Are Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.