Apple's success over the last decade with the iPod, iTunes/App store, iPhones could be attributed to the fact that their products are vertically integrated. They provide users with an extremely user-friendly ecosystem that facilitates the purchase and consumption of media and software. Now they are adding advertisement to their ecosystem. There are not much details about how it will work, but Jobs has said the following:
- Developers keep 60% of ad revenues;
- Apple will host, deliver the ads;
- There are a number of companies already signed up to spend $60 million dollars on the platform for the second half of this year;
- Ads will display from within the apps; ads will be highly interactive allowing users to watch videos and even buy products without leaving the ad or app.
In addition to the install base Apple has a benefit no other mobile ad company has: it knows the product inside out. Apple knows exactly what can and can't be done with the iPhone and therefore they know exactly what kind of ads can be built. This will push the limits of what kind of ads can be done and possibly yield innovative ads.
Another reason why Apple might change the mobile marketing arena is the leveraging power they have. They've already secured $60 million worth of advertising for a service that is not out or has been proven yet (proof of their leverage). Apple will most certainly negotiate good deals that will benefit them and will allow them to provide developers with a "perfect" single solution. Developers need not worry about looking for other mobile ad solutions if Apple has a broad, solid portfolio that pays good and requires almost no management.
iAds seems to be another solid addition to what seems like a perfect ecosystem. If Apple has made iAds as friendly as their other solutions we might be looking at the next step in the mobile marketing evolution.
1 comment:
Good Article. No doubt, the mobile represents an channel of publicity which lures almost every marketer.
Stokes in its book give some reason why the mobile is so attractive, we have:
* It´s personal
* It´s always on
* It´s always carried
* It captures the social context of media consumption.
But, What kind of campaign can be promote to mobile phone?
How can mobile phone complement an existing campaign?
Can an mobile phone be an effective medium to promote ads regarldess of the type of company?
How avoid the fact that users can feel that the ads are invading its personal space?
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