Apple iAd: iPhone OS 4 ad platform offers devs 60% of revenue | iLounge News

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Apple iAd: iPhone OS 4 ad platform offers devs 60% of revenue

During Apple’s iPhone OS 4 event today, Steve Jobs announced the creation of a new mobile advertising platform which will be integrated directly into the iPhone OS. The new platform, named iAd, is designed to allow developers to easily add in-app advertising to their applications by supplying ads through a centralized advertising network without having to implement their own solution. Apple will take care of selling and hosting the ads, providing developers with the industry standard 60% of advertising revenue.

Jobs explained that Apple wants to provide incentives for developers to keep free apps as free, but that ads based on search have not been as successful on mobile devices as they have on the desktop as users spend most of their time in apps rather than searching in a web browser. He went on the explain that the average iPhone user spends 30 minutes each day using applications, and supplying even 1 ad every 3 minutes would equate to 10 ads per day. Jobs notes that with 100 million iPhone users, this presents one billion ad opportunities per day within the iPhone community.  Apple is also looking to improve the quality and accessibility of in-app advertising, with more interaction than typical web ads and allowing users to view advertising without being taken out of the application that they are currently using, thereby encouraging users to click on ads without having to worry about leaving the current app.

 

 

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Comments

1

I don’t know if I’m alone here, but I think this iAd idea is a very very bad one.  As soon as my iPhone starts becoming a platform for unsolicited advertising, I’m throwing my iPhone in the river and will *never* use it again.  Advertising invades every part of our lives these days, nothing is sacred anymore.  We live in a consumer society and everywhere you turn these days you are confronted with misleading, unwanted, “legal lies” that vie for my attention.  I try to watch network news and have to deal with pharma, commercials that try to use every conceivable psychological ploys of subliminal suggestions in the attempt to peddle all forms of pond scum.  It’s way overkill and has been having quite the opposite effect on me because I will refuse to buy a product that puts such horse hockey in my face.

Let the products compete in an objective environment that can be searched and commented on by fellow consumers.  A place where the best products win by word of mouth and by value and reputation instead of by money, flash, misleading, and manipulative advertising.

Apple, don’t do this!  stop iAD!!

Posted by Ray Schafer on April 14, 2010 at 9:23 PM (CDT)

2

...I’m not surprised you’d never use your phone again after throwing it in the river!

Still, I too am amazed that no-one’s made more of a fuss of this. Imagine how annoying it will be when adverts keep popping up in the middle of using apps. What’s to stop them from rolling this out onto their full OS so that our laptops and desktops (and iPads, perhaps) blast unwanted adverts at us all the time?

Posted by iPoddity on April 15, 2010 at 11:49 AM (CDT)

3

I’d be outraged too, if I didn’t understand what was going on.  The ads will just be in applications, much like they are now and have been since 3rd party apps have been around on the iPhone, it’s just that Apple will be selling them as well as the other ad sellers.

If you don’t like ads in your apps then generally there’s a more expensive paid version without them, and if there is not then just don’t use that app.  Nothing here is changing apart from that Apple is trying to get in on the ad sales as opposed to just leaving it up to other companies.  Developers who want to be a part of it can be, but they’re not going to start showing ads before you can make a phone call.

Posted by Jeffery Simpson on April 15, 2010 at 12:28 PM (CDT)

4

It’s a slippery slope oiled when Apple’s desire for money exceeds the desires to obeisance to the wishes of the user.  We get used to advertising and allow it in everywhere. Just look at this web page to the right!  It’s everywhere and as long as we allow it to continue to encroach into our lives it will - and eventually fill every nook and cranny. Some things should remain sacred and hollowed grounds.

I draw the line on my phone and my computer screen.

I still have the utmost respect for Apple’s ingenuity to deliver extraordinary products that are a joy to use and operate.  They have a great touch.  But all of that will be ruined by the ravenous nature of ubiquitous advertising!!

Stop iAD! Quick before it’s too late!!!

Posted by Ray Schafer on April 15, 2010 at 1:57 PM (CDT)

5

I’m not big fan of advertising in many cases, but the problem is that we can’t really have it both ways…  Content has to be paid for, and in today’s economy this means that either the end-user pays for it or the advertisers pay for it. I happily buy my TV shows from iTunes to get ad-free versions, but the trade-off is that I pay $2 per episode out of my own pocket rather than letting advertisers pay for that content on my behalf.

Likewise, web sites can either implement a “pay wall” like some of the news services are doing, or continue to sell advertising to support the costs of running the site. We’ve seen how well that charging for content on the web is working out, so most sites naturally opt for the latter approach.

In other words, there ain’t no such thing as a free lunch.

The same economics apply on the App Store right now: You can get an app for free, but you’ll need to put up with some advertising in that app as a form of payment for the work the developer put into it. Alternatively, you can pay for an app and have it free of advertising.  Many developers in fact specifically offer two identically-featured versions of their applications for no other reason than to provide users with this choice.

Most developers of free applications are already serving up advertising through third-party networks like AdMob.  These advertising services make it just as easy to integrate their ads into an app as Apple’s iAd service will, so I don’t think there’s any reason to assume that iAd is going to encourage any more apps to do this than already are.

There are two specific advantages to iAd: First, Apple has the advantage that they get a cut of the revenue that they’re otherwise missing out on from free, ad-supported apps that are already on the App Store. The goal here is not to promote more advertising, but to get a cut of the advertising that’s already in place through third-party services.

However, there will also be a tangible benefit for us, the end users. Ad-supported apps are already abundant on the App Store but a lot of them implement advertising that is the equivalent of bad browser pop-ups and spam e-mail messages.  From the demonstrations shown thus far the quality of ads through iAd will be significantly better than what’s being served up by some of the bottom-feeding advertising networks that are out there right now.

Beyond that, I think it’s fair to say that market forces will work things out in the same way they already have. People generally don’t tolerate advertising in things they’re paying for in the same way they tolerate it in free content.  If paid apps start to integrate advertising its a safe bet that users will avoid those apps, and if Apple were ever foolish enough to attempt to build advertising into the OS itself there would be a mass exodus from the iPhone platform as a whole.

Posted by Jesse Hollington in Toronto on April 15, 2010 at 2:28 PM (CDT)

6

If I am getting an App for free, I fully expect that ads will pop up. That, as Jesse stated, is the trade off. If I download a free App and like it enogh, I will buy the “ad free” version to get away from the pop-ups.

I can not see Apple integrating ads into the OS at any time. That is something that they have been very good about in their computer market. As Microsoft and the plethora of PC makers sold real estate on the desktop to AOL, Norton/Symantec and many other companies, Apple kept their computers clean and clutter free. It is one of their strong suits and they surely realize that.

Posted by Mitch on April 15, 2010 at 8:11 PM (CDT)

7

@Ray Schafer: I’ve got news for you, your iPhone is already a platform for unsolicited advertising.  The only difference here is who’s selling the ads.  If you’ve never seen an ad by somehow managing to have never launched Safari or done a search, or used any of the very popular apps out there that already have ads, then you might as well throw it in the river because you’re not getting very much out of it.

Posted by hardcle on April 15, 2010 at 8:25 PM (CDT)

8

Hey, hardcle, I use my iPhone quite a bit and, and know what’s on it.  Except for some websites I hit with Safari, it is free of advertising.  There are no pop-ups on the iphone now.

I want to keep it that way.  I have no problem paying for apps I like.

So the argument for iAD is that it will help people have free Apps if they are willing to have advertising?  This is analogous to another idea.

I’m old enough to remember that cable TV was supposed to do away with advertising - it was sold as pay TV so that you would no longer have to watch commercials because the subscribers would subsidize it.  You can see how that worked out.  Tell me what makes you think that iAD will be any different.

Posted by Ray Schafer on April 19, 2010 at 8:19 AM (CDT)

9

Most of you are making a big deal out of nothing and don’t seem to understand what iAd is.

- Ads only appear in those apps where the developer specifically adding them - they don’t just pop up unsolicited when using your iPhone.

- Ads have already been around for as long as apps have. Most developers use AdMob or some other partner to provide the ads. If you have not seen any ads in your apps til now, you probably still won’t see them because apparently you aren’t using those apps that have ads. iAd just means developers now can get ads directly from Apple instead of someone else - shouldn’t effect you as a user.

- Those apps that do have ads are generally free and are supported by ads. How would you feel if you went to work everyday and then your boss said if he had to pay you this week he would throw you in the river?

- AdMob and the other generally have very crappy ad content. iAd ads look much more polished and keep you in your app if you click them. If you are going to be using a app that has ads anyway, whats so bad about getting “better” ads?

Stop whining, get your facts straight, and think about it.

Posted by mkppk on June 11, 2010 at 1:09 PM (CDT)

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