This week, amidst the hubbub of the iPhone 4’s re-revealing, Steve Jobs also announced Apple’s first foray into the advertising biz. The predictably-titled iAd platform will launch July 1st. Promising to be both smarter and more engaging than the current standard, this in-app solution arms developers with a new stream of cash to support their free offerings. For brands, iAd is an opportunity to engage directly with the millions-strong network of “Passionate,” “Responsive,” and “Connected” Apple users. But antitrust regulators aren’t quite as jazzed about the initiative. The question is whether iAd is just another case of Apple’s corporate control freakishness or a genuinely exciting step away from the bad mobile ad-age? Let’s have an iLook.
The folks at Hill Holiday report that the iAds themselves behave much like full-blown applications. Instead of opening up into a sluggish browser window, they sweep across the page, offering an altogether smoother experience. An exit button is always within view too, and the original content never seems far out of reach. Meanwhile, current handheld ads mean banner taps that lead to clunky web pages and bland content. As Jobs recent stated, “we think most of this mobile advertising really sucks.” Seems like reason enough to take a stab at something better.
Demoed during WWDC 2010, the upcoming Nissan Leaf iAd is a step in the right direction. Simple, elegant design and a variety of useful features make for a compelling experience:
Let’s not get too hopeful, though: news surfaced this morning that the platform has caught the attention of the feds, prompting a full investigation around claims that new terms will unfairly hinder competition and ultimately hurt developers and consumers. Could this be a play by Apple to selfishly keep their phone’s highly-coveted marketplace all to themselves? They’ve been accused of unfairness before, most notably with the App Store itself and the continued denial of various submissions (including the high-profile veto of Google Talk) on the basis of mysterious, often vague reasoning.
Beyond the investigation, details about the platform itself are still foggy: will Apple’s ads share a set of common traits? How creative do they plan on getting during the process? How many of them will make use of location-based technology and provide social connectivity features? These spots may prove little more than glossy, slick endorsements, each packed with the same bells and whistles as the last.
Questions notwithstanding, it’s still an exciting platform for many big brands. Jobs claims that the iPhone’s userbase spends an average of 30 minutes per day fiddling around in applications. They’re browsing for tips and information on any number of topics via these unique, specifically designated programs. That’s significantly different than the PC world, wherein users overwhelmingly spend their time wading through search engine results. It’s enough to convince the likes of Unilever, AT&T, and JC Penney to pair up with Apple and throw a proclaimed 60 million in ad dollars at initial launch offerings.
The opportunity certainly seems to be there for better advertising. Unlike the iPad and its content, which have remained (for now) mostly stale and unexciting due to a lack of innovation by publishers, iAds are being developed chiefly by Apple itself. While it may be an attempt to muscle their way to a bigger piece of the pie (they’ll be taking a very significant 40% cut of the ad profit, leaving developers with 60%), we’ll be surprised if we don’t see a lot of brands working to develop truly stellar “iAds.”
Can Apple bring the mobile ad industry kicking and screaming into the post advertising age? July 1st is right around the corner, folks.
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