iAd for iPhone, what does that mean for Google

Apple just presented a preview of iPhone 4.0. Off all the bells and whistles with multitasking and other features released in this version, the most interesting one is iAds integrated into the iPhone api.

Salient Features;
  • 60% of the revenue is shared with the developers.
  • You as a developer can directly embed ads in your app from the api
  • The ads will be sold and hosted by Apple.
  • They have a limitation on how many ads will be served per-day, per-phone, per-app
So what does that mean to other ad-serving companies like Google, Yahoo, Microsoft etc...
  • More iPhone developers with little or no knowledge about the Ad media market will bend towards Apple. (like Adsense for Blogger)
  • 60% is a good incentive for developers to use the in-built ad serving API, rather than finding loops to place ads by AdMobile or Google on their apps.
  • This means less customers to Google, Yahoo and other ad-networks for serving mobile ads.
  • Most of the ads on the web are in flash, but neither the iPhone nor the iPad support them, so advertisers will either follow a new format for displaying ads or get creative with classical formats on these devices.  
  • Apple has officially entered the ad serving business, along with the other big players in the market.
  • The ads look more interactive and innovative. So we see a new format coming out, plus a new way to measure the cost, apart from the classical CPM, CPC stuff.
  • The same ad-server and format might serve a way to show ads on the iPad websites too...
Other Things we might see coming out of this.
  • Google Android, next version can also have a similar "Adsense/Doubleclick" api.
  • Similarly Windows mobile 7.0 will be tied up with Atlas.
  • Since Android is far more spread (in terms of devices) than iPhone OS, anything that is connected to the internet can server ads.
  • The ads look more interactive and innovative. So we see a new format coming out, plus a new way to measure the cost, apart from the classical CPM, CPC stuff.
Acceptance rate might be slow initially, but a change is already rolled out.

As consumers we should be worried as more and more targeted ads can now be served to you. The day shall not be far, when using location services, the iPhone pushes an ad-notification on your screen.
It's lunch time! How about a Big Mac to fuel the appetite! 
 when it finds you walking past one... 

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