Apple Announces iAd Mobile Ad Delivery Service

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Along with iPhone OS 4.0, Apple introduced iAds at its special media event on Thursday. The iAds service will display multimedia and interactive ads in iPhone, iPod touch and iPad applications that goes beyond what’s currently available from other companies delivering in-app ads to mobile devices.

Steve Jobs, Apple’s CEO, showed off examples of iAds in action with a sample from big box retailer Target that included an interactive dorm room design app that lets users pick out their room gear before heading off to college, then reserved their purchase for pickup at their local store. He also demonstrated a Pixar ad for the upcoming Toy Story 3 movie with an in-ad game.

Unlike ads that appear on many Web pages, however, the ads Apple highlighted were built with HTML5 instead of Adobe Flash — a fairly clear indication that Apple still has no plans to allow Adobe’s ubiquitous multimedia platform onto its mobile devices.

iAd advertisements can be designed by app developers as well as advertising companies, which has the potential to make the content creation open to a larger group of people. According to Mr. Jobs, Apple will take a 40 percent cut off of ad revenue, which he called an industry standard.

While Apple’s move into the mobile ad market is no surprise, the company’s plans may catch its competition off guard — and it means Apple is looking to change the mobile ad delivery and presentation market.

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11 Comments Leave Your Own

Larry

Now we know why iPad was invented….
It’s a BILLBOARD!

iVoid

I think this has confirmed that Apple is now the evil empire.

I doubt they’ll allow iPhone users to opt out of all the marketing info they’re gathering on users.

MOSiX Man

^ Above we see the common web troll. You should not, under any circumstances, feed these creatures.

Bosco (Brad Hutchings)

No, you just disagree with them and have nothing substantive to argue. That’s all.

Dean Lewis

If they had something substantive and factual to argue with, then it would be worth the time to respond. As it is, they do not. (Well, Larry’s comment is more a joke smile )

There was nothing in today’s presentation which claimed ads will be popping up on your screen willy nilly or that any information will be grabbed from you. Until more is known, such accusations are simply trolling.

There will be many ways developers will tie into iAd. If someone doesn’t like the way a free ad uses it, they can delete the app. If they don’t like how a paid app might use it, they don’t need to buy the app in the first place.

iVoid

You’re kidding yourself if you think apple won’t be gathering view/click/ad interaction data and sending it back for the advertisers to know if their ads are having any effect.

Without that data, no advertiser is going to sign up for the service.

Bosco (Brad Hutchings)

Forget it iVoid. He doesn’t have any idea what he’s talking about. In Dean’s mind, Apple is good and everything else isn’t unless Apple says it is.

For example, nothing in today’s presentation claimed 1 billion impressions per day based on average app usage of 30 minutes per user. See, Dean has no idea what he’s talking about. Ignore him. He’s just trolling.

Lee Dronick

If they don?t like how a paid app might use it, they don?t need to buy the app in the first place.

Well we do need to know that the ads are there in the paid app before we decide to not purchase. I hope that information will be allowed in the App Store reviews.

James

Well, I’m not a troll, and I agree, however reluctantly (though I think the evil empire bit is a little much). Depending on the implementation, this could be a very bad idea, and the first move Apple has made throughout the iPhone’s development that is making me think twice about my next smartphone purchase. Our phones are not the place for this, guys. Can you imagine how up in arms we’d be if this had ever been suggested for the Mac? It wouldn’t surprise me if there were a third-party solution to blocking it all too, but good luck getting that approved. Kind of a sad day’s Apple news, for me, utterly bereft of any oo-ing or ah-ing.

James

Oh, and (please forgive the double post) for the actual trolls: what makes you think that if this delivery model is a success, you won’t also begin to see it in Android and Windows Phone 7, hm? Because Google and Microsoft are made of sturdier moral fiber? Surely you’d be jesting. wink

Dean Lewis

You?re kidding yourself if you think apple won?t be gathering view/click/ad interaction data and sending it back for the advertisers to know if their ads are having any effect.

And this is different from many other places you consume free stuff on the internet how? So what? There are laws about the kind of info they are allowed to get, and I doubt they want to deal with the fallout if they were found to be collecting more than that, which your initial message implies. Your other implication is that they’ll be sucking information from you willy nilly or popping up ads at any time, but so far all we know is this is a method for developers to advertise within apps. I see no proof yet of people’s fears that Apple will be putting ads over their home screen nor that even apps will be popping up things in the way of what you’re trying to do (the example in the presentation was a small bar at the bottom of a screen that popped up an ad if you clicked on it and then returned to the app afterward).

If you don’t wants ads, don’t download it. They may tell you up front.  I would suspect ads in pay apps would be because the app is extremely inexpensive or the developer wants to advertise their other apps. If they misuse it, word will get out and their sales will drop, q.e.d. My assumption would be that mostly free apps will have ads. Very little in this world is free. Not even my free advice smile

My main call is to not panic about this, and certainly to not overstate things, especially when we only know a bit about it all. Hell, I’ve seen people claim they’ll pirate apps rather than pay for them now that ads even exist. Well, sure, that’s helpful.

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