Opt-In for Apple’s iAds to Experience the Marketing Frontier

by Jeff Walters on July 11, 2010

You need to opt-in for iAds – either as a marketer or a consumer of ads. At least if you want to stay abreast of how we’ll be building brands and businesses in the coming years.

As a consumer, it has always been trendy to shun “annoying” ads, but if you want to stay in the game on how marketing will evolve, consuming innovative ad solutions is a must. As Silicon Valley legend Regis McKenna once said – marketing is everything (“Marketing Is Everything,” Harvard Business Review, 1991).

Apple gets a lot of credit for innovation in hardware and software, but with iAds they just might be on the cutting edge of advertising innovation, too. Not just because they can deliver the ads across their network and through their iPhones and iPads, but because they are taking a run at highly targeted, mobile, informative and entertaining ads that can capture the imagination of creative advertisers and consumers alike.

The ads launched this past week on iPhones and are coming soon to iPads. Early advertisers are experimenting with the rich media platform that integrates sight, sound and motion to blur the lines between ads, entertainment, information, applications and more. In addition, Apple’s iAd Network is offering targeting criteria including:

  • Demographics
  • Application preferences
  • Music passions
  • Movie genre interests
  • Television genre interests
  • Location!!

Though many offer similar targeting criteria, the combination of Apple’s network of valued customers, its devices and “location” are what really sets iAds apart. Others extending the boundary of marketing’s frontier to leverage location-aware technologies include foursquare, Yelp, Gowalla, Medialets, Google and, soon, Facebook, but Apple is now out of the gates with big advertisers in tow (AT&T, Best Buy, Campbell Soup Company, Chanel, Citi, DirecTV, GEICO, GE, JCPenney, Liberty Mutual Group, Nissan, Sears, State Farm, Target, Turner Broadcasting System, Unilever and The Walt Disney Studios – see June 7 press release for more). Some are even locking up categories with exclusives in order to align their brands with Apple’s iconic brand (Advertising Age – June 28).

In short, the platform combines the emotion of TV (video), the targeting and call-to-action of direct marketing (click through and purchase) and the intelligence of Apple’s products (their sensors can detect and deploy interactivity via motion, such as shaking the iPhone) into a new platform for advertising. The best of these ads will essentially be compelling apps (see SFGate – San Francisco Chronicle site – story and screen shots).

Combined with a consumer’s explicit direction on what they’re interested in seeing via opt-in, like new products or promotions from specific brands, the iAd platform offers advertisers the ability to finally realize the full promise of mobile advertising in scale for the first time.

Even as others provide ad solutions across platforms (Apple, Android, etc.), go ahead… opt-in for iAds. It might just put you in front as we push toward the marketing frontier.

  • Vivek C. Gupta

    This brings up an interesting dilemma for app developers and app users.

    App Users – Would the app users be now inclined to download the free version of the apps, so they can be presented with personalized, interactive and immersive iAds, or would they get the paid version of the app, and feel like they are no longer invited to the iAd party?

    App Developers – How would this impact the decision-making around the pricing of the app? Would the app developers witness cannibalization due to the iAd supported free app versions taking away download share from the paid version? Would they need to intelligently price the paid version so it takes into account the revenue generated from the pay-per-click revenue sharing for in-app iAd?

    Thoughts?

  • http://strategyoutfitters.com/ Jeff Walters

    Thanks for the intriguing questions! I can imagine the story will play out in an infinite variety of ways in every category.
    For App / iAd users – they'll go with the solution that creates most value. For those advertisers that can afford to give away apps as free investments in customer relationships, they'll do so. And customers will “line up” for them. At the same time, several brands already charge for apps, so there is precedent for creating value worth paying for by producing a desired solution (solve a problem or entertain the user).
    For App Developers – their world does not change that much. They have already been competing with each other and the “early innovators” of branded apps. They'll simply have more competition and be forced to take their games to another level to add value to their apps beyond what the free providers are willing to provide whether the free providers are big brands or a kid working from his home (like Chatroulette, developed by a Russia teen). As for pricing the app to optimize ad revenue vs. app revenue, developers will all become more sophisticated about revenue management. They'll borrow from leaders of the practice like direct marketers and the travel industry where optimizing the revenue yield on limited or expiring inventory/assets (airplane seats, hotel rooms, fashion items, or even each valued customer engagement, etc.) will become a heavily adopted science.

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