Posted by Jon Davie (Managing Director)
Last weekend saw the iPad go on public sale in the US, and Apple reported first-day sales of 300,000 as punters queued up to find out if the latest miracle device could really live up to the hype.
We’re eagerly looking forward to getting our hands on an iPad in the coming weeks, but another piece of news from Cupertino slipped out this week – one which could have a major impact on the media industry.
I’m not usually in the habit of watching one-hour technical presentations from Steve Jobs, especially when the topic is the forthcoming launch of iPhone OS4, the latest version of the operating system behind the iPhone and iPod touch. So I’m indebted to Carl Lyons’ Talkable Likeable blog for flagging iAd – Apple’s new ad network, which will allow developers to monetise apps by embedding advertising within their applications.
After watching the iAd product demo a number of things struck me as important:
- Mobile users use apps rather than search to find information on the internet. iAd is a bold challenge to Google’s dominance in the online ad market
- Apple will sell the ads and split revenues with app developers. This is another step in Apple’s move from being a technology company to becoming a media company
- Ads can make full use of the iPhone’s in-build functionality – accessing other applications such as maps, GPS, contacts and video. Advertisers have the potential to create immersive experiences which combine the targeting, interactivity and measurability of online with the visual impact and engagement of TV
- Users can interact with ads without leaving the original application. This is a fundamental change in the way digital advertising works – rather than trying to tempt people to ‘click here’ with an interruptive message, advertisers can finally start to respect both the user and the media environment where the ad is served
Media coverage of the iPad has focussed on the potential of the device for newspapers, magazines and book publishers. Perhaps this is unsurprising – journalists like nothing better than writing about themselves – and the platform will undoubtedly stimulate innovation in the traditional publishing sector.
But I can’t help thinking that the real game-changing potential of the platform is for advertisers – and that iAd will go a long way towards ensuring that advertising money continues to flow away from traditional media companies towards innovators like Apple.
You can view the relevant section of the presentation below - the full iPhone OS4 video is here.