Apple Launches iAd – Welcome To Location Based Marketing By Apple

Amidst all controversies Apple has launched it’s own location based mobile advertising platform for developers who want to monetize their apps. This new mobile ad platform is available in the iPhone OS 4G and is called the iAd. With the introduction of this Ad platform, developers who have otherwise been making a lot of profits with location based advertising apps have to now change the way they used to monetize their apps.

iAd-apple

Apple gets to keep 40% of the advertising revenue from the apps and the developers get to keep the remaining 60% revenue. Although the platform will fetch lot of profits for Apple but from the developers’ point of view the iAd platform aims at bringing monopoly as developers have to pay a hefty share to Apple from their advertising revenue.

But analysts feel that the iAd platform is a major leap towards a new kind of in-app advertisement as currently all the  iPhone advertising formats that exist are just simple slabs of images or text. Based on Apple’s hybrid model of cost per click, cost per action and cost per 1000 pageviews of it’s ads, some results point us to the fact that both developers and apple would be benefiting from this ad platform.  The  iAd platform could generate $2.48 billion in annual revenue if Apple hits $17 per 1,000 viewers.

Google has already been serving optimised adsense service for mobile content providers and although the program has fetched Google a lot of revenue from mobile advertisements alone, mobile content providers have also gained a lot from this program. Also publishers are assured of the fact that as long as there is someone officially governing the ad display, no spam ads would show up. Going by similar lines, the iAd platform also has great potential for success. But only time will tell about how the ad platform performs.

Image via Intomobile

2 Responses to “Apple Launches iAd – Welcome To Location Based Marketing By Apple”

  1. April 12, 2010 at 3:35 pm #

    From now on developers have to strictly use the new iAd platform to display advertisements in their apps and failing to do so might lead Apple to ban the app from the Apple Appstore.

    No, that’s not the case. Developers still have a choice of any advertiser they wish to use in their app, like how Twitterrific for iPad does.

  2. April 19, 2010 at 10:42 am #

    Debjit

    When Steve Jobs launched iAd, I think he makes some key points about bring emotion and interactivity together and a complete overhaul of how ads will be delivered on mobile devices. Which are important to note, I think.

    See video here http://www.youtube.com/watch?v=q7WVt63S49s

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