iAd – The Big Deal

After the recent iPhone OS4 announcement, I felt a strange sense of excitement which I had never had after previous announcement by Apple (mainly because it was bollocks like ‘we’ve now got MMS!’). This was very very different indeed, and had nothing to do with the long awaited introduction of multitasking. No, for me, the real excitement was relating to the mobile advertising platform ‘iAd’ that comes pre installed in the OS. So whats the big deal? And who will it benefit? Its a big deal because it is approaching mobile advertising in a format yet to be experienced by the average mobile user, and by embracing the rich content ability of the platform, allows for some real cool creative to be employed. This means happy Apple, happy agencies, happy brands, and most importantly, happy users! Here is why I think it is so good:

• Emotion and Interactivity…together – Apple have recognised that digital display advertising in its inherent form allows for a degree of interactivity, without evoking much of an emotional response, whereas TV advertising can make a significant emotional connection with its audience without much interaction (ok, maybe a call to action but no direct interaction). The iAd platform appears to allow for a substantial dollop of both. Gaming, content and utilities are crammed into what should be a direct link to a web page, but in essence, its an app within an app. This allows for a broad spectrum of interactivity, as well as the ability to make an emotional connection through video support.
• Ads keep you where you want to be – So you are served an ad within an application, and for once you are ever so slightly interested/intrigued by what the ad is offering (surely it isn’t a RELEVANT ad?!). However, you know that if you click it you will be removed from the application you were originally intending to use, and are then dumped on some random usability nightmare of a web page in Safari. Not with iAd. The ads remain within the application, which means you can engage with the ad and its key messages, before returning to exactly the same place you were before. No more re-navigating back to your ex-girlfriends facebook page, or having to work your way back to Level 34 on Paper Toss!
• 60% of revenues into developers pockets – If your App opts to host some ads, you get a cut of 60% of the revenue – Brucey’s Bonus!  And knowing the ads will be interactive and engaging, it can only encourage developers to consider there inclusion. And we knew Apple had to make some money out of it somewhere, so as well as Apple selling and hosting the ad space, they take the reasonable 40% cut.

I believe that this has been well thought through by Apple, with a view to making a bit of pocket money, but by also offering a proposition that is attractive to developers, advertisers and consumers. Very clever indeed. The key challenge facing Apple, who are selling and hosting the ads, is to ensure the quality of the ads is maintained to a high standard, and to make sure all the ads that they serve are RELEVANT to the users. This relevancy, where it can, must be focussed not on the specific app that the ad is served in, but take a deeper look at the variation of apps loaded on the users device in order to create their ‘preference profile’. I don’t believe this challenges privacy too much, but as long as it is well executed all will be fine. Take a look at the iAd section of Mr Jobs presentation in the videos below.