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iPhone 4.0 OS: Now with iAds

Today at the iPhone 4.0 preview event, Apple announced that one of the new features coming in 4.0 is the iAd network. According to Steve, an average iPhone user is on their phone using apps about half an hour a day. So at one ad every three minutes, that's 10 ads on each device each day, and with almost ten million devices out there, Apple claims they'll be serving a billion ad opportunities every day.

And yet this isn't the huge news about iAds. Here is what makes it a big deal: Apple built the network and is offering it up to developers to use how they'd like, with 60% of the revenue made on those ads going to developers themselves. That's up a bit from the standard "Apple gets a 30% cut" rule of thumb, but more than half seems more than fair. Apple hosts and sells the ads, and developers take home over half the revenue.

The ad demonstrated live actually looked cool: they showed off little Toy Story 3 ad at the bottom of a news app. Tap the ad, and it comes up with some options (a character list, sounds from each character, etc) and even a game to play, including an option to buy a game from right within the ad. Steve even asked if anyone had seen anything like this before, and among the gathered press, he got silence in response.

Currently, the most educated of guesses is that the AdKit API will be a developer source as well as an iTunes source (iTunes sources are where the App Store and Music Store get their content.)

After the event in the Q&A session, Steve said they attempted to buy AdMob and got sniped by Google, so they bought Quattro and are trying very hard to come up to speed on what web advertising is like, presumably so they can change it. As long as they aren't trying to get me to refinance my mortgage or whiten my teeth, I'm looking forward to the future of advertising on the iPhone.

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Today at the iPhone 4.0 preview event, Apple announced that one of the new features coming in 4.0 is the iAd network. According to Steve,...
 

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Cedric

Honestly, people are taking this out of context. It's a -developer- feature. There's already plenty of apps in the store that are ad supported. This is simply Apple saying "We dislike the quality of the ads being used and think it lowers the overall quality of our platform. BUT we understand that ads are the only way for some of our app developers to -support- the development of their app."

So they're giving developers a way to be ad supported by what will be, we can assume, ads that pass Jobs idea of quality.

This is a -good- thing. I'm sure most of you have at least one app on your phone that is currently ad supported. And I know that at least on my phone some of those banners have been for things that are absolutely idiotic in relation to someone who's sitting there with a iPod/iPhone in their hands. I've seen some ugly ones. I've seen some that are downright obnoxious just from their design alone. Those ads lower the quality of the app they are in. But developers -do- need to make a living somehow and ads are certainly one way to try and accomplish that. The better the quality of those ads, and the better the api's and architecture behind it, the more likely we can get some -very- high quality apps that are -free- to the end user.

April 09 2010 at 1:57 PM Report abuse rate up rate down Reply
collide000

I watched the keynote and I'm pretty impressed with iAd. I have
almost never clicked on an ad on a webpage, but from the mock up
demos Steve showed, I may just click on some if I download an app
implementing them. That Nike history thing was pretty cool, and
downloading wallpapers, maps... all with a unique design, the
possibilities are endless. First time I have EVER been excited by the
prospect of ads. Mind you, Apple has already shown they've got a nack
for advertising, even their banner ads are pretty memorable. I think
this going to be a huge sucess.

April 09 2010 at 1:35 PM Report abuse rate up rate down Reply
Rodan

Bearing in mind everything that has already been mentioned, the crux of the matter for me is evaluating the value of individual PAID apps, and an obvious criteria will be whether that app has ads, or not. In my book, the value of any app is degraded by the addition of ads. However, I will look at whether alternatives are available which are ad free, and then compare along the entire spectrum of functionality and interface. If there are no solid PAID alternatives, then I will examine free alternatives, as either app will have ads. If iAd really means that there will be a formalized, uniform mode of presentation of ads, then this will make the evaluation of this criteria (presence of ads) across apps significantly easier.

As far as free apps, I agree this is a major boon for developers and app users, for the reasons already covered.

April 09 2010 at 9:43 AM Report abuse rate up rate down Reply
ciaran

FFS, watch the keynote before going into a diatribe about ads. It's an interesting way of keeping ads as visible as they are today without making them as intrusive as they are.

No one is forcing you to click on ads.

April 09 2010 at 12:28 AM Report abuse rate up rate down Reply
mrt2

Seriously... SERIOUSLY???? Are all the people in this comment thread honestly this dense, or perhaps just daft? I'm sorry to start out so abrasive but it seems like people aren't thinking or just making up stuff here...
This quite possibly be the greatest announcement for the iPhone to date.
Having a way for developers to make money with ads (just like web developers make money for their websites with ads) is a great GREAT thing. This means there will be more free apps on the app store and not only that there will be more developers interested in developing for the App store... This could single handedly put the nail in Androids coffin. Everyone who is saying all of these negatives are talking out of their arse.

1.) NO the ads won't just pop up while you're playing your game and disrupt what you are doing. They will slide to the bottom of your screen and only pop up when you interact with them. They won't be obtrusive if you don't interact with them. You can choose to not interact with them at all. Steve made this VERY clear in the keynote if you were listening correctly.

2.) To the bloke who said that he was disappointed because Apple will get all this money and developers won't get any must have been watching an entirely different keynote. Apple is taking a 40% cut yes, but you fail to realize that Apple is doing ALL the work for the developers. They are negotiating prices with companies and/or ad agencies, and selling the ads for the dev so they don't have to. This opens up a WORLD of opportunity. This means that Joe blow off the street would have access to pricing and ads that from top companies who pay TOP dollar for these ads that he other wise would have never been able to just walk in off the street and set up an appointment with these agencies/companies. Not only is apple doing all this leg work but they are hosting all the ads on THEIR servers meaning that's even more extra overhead that developers don't have to worry about. So you're telling me that Apple shouldn't take a cut for doing this and should somehow do all of this for free even though no other smartphone manufacturer in the world is giving their dev community nearly as many opportunities to monazite their hard work? Are you seriously saying this?

You guys seriously need to get a clue. Everyone who is complaining here I guess you are feverishly scrambling to find blogs like TUAW who don't have ads on their page so they can actually make income off of their work and their website which they maintain huh? You must also think that the companies who host TUAW's website should also not charge for the bandwidth TUAW uses too huh? You obviously must think this because I know you're not so hypocritical enough to think that it's ok for TUAWs hosting company to charge them for hosting but it's not ok for Apple to charge for hosting, selling, and providing access to ads for developers.

I hold TUAW readers with the highest regards especially when compared to the likes of the usual anti-Apple nonsense you see in comments sections of Engadget and the like but today Apple isn't the one I'm disappointed in, it's the TUAW commenters... I really do seriously have a hard time believing any of you are this dense.

April 09 2010 at 12:28 AM Report abuse rate up rate down Reply
1 reply to mrt2's comment
studio

I'm not sure if it is the terrible economy or are people JUST SO CHEAP! This I want EVERYTHING for free is way out of hand. People complain because there is an add in the FREE app they downloaded. Get over it already! You can pay for the phone, you can pay the monthly services but you REFUSE to pay for apps and you have the nerve to think the developer is making this app at a cost to themselves for your enjoyment! Seriously!! I hope all FREE apps are FULL of ads and the developers make a ton of money off of you CHEAPSKATES / GREEDY / SELFISH SOB's.

iAd RULES!

April 09 2010 at 9:20 AM Report abuse rate up rate down Reply
medah4rick

man if i get ads in my paid apps i think i will have no choice but to go back to windows mobile. i dont need no ads in my mobile device i get enough ads everywhere else. i always considered my phone as a private sanctuary from the constant bombardment of ads. is anything sacred anymore?

until apple comes out publicly saying that paids apps won't have ads in them then you can bet there will be ads in your paid apps as well.

April 08 2010 at 10:28 PM Report abuse rate up rate down Reply
1 reply to medah4rick's comment
mrt2

Yeah because lord knows you'd never pay for anything and then have ads to go on top of it... I'm so glad I don't have to pay for cable because ads pay for it all.. wait... I do have to pay for cable... Hmmm... well then since I'm paying for cable and I'm glad that I can expect starting tomorrow there will be no more ads.

April 09 2010 at 12:30 AM Report abuse rate up rate down Reply
bruce

You're "looking forward to ads on iPhone"? Are you an idiot or just a mindless drone? You are looking forward to having every app you buy festooned with ads for vince vaugn movies and penis pills because greedy developers want to make more money along with Apple? Nothing destroys, ruins, negates, and annoys like advertisements. On free apps I can understand and avoid them. But on paid apps ads are unacceptable. And you're telling apple and every advertising exec that you are LOOKING FORWARD to seeing their ads all over your iPhone?! This is the single dumbest thing I've ever heard someone say. Is there anything apple can say that won't make you wet your pants?

April 08 2010 at 7:07 PM Report abuse rate up rate down Reply
3 replies to bruce's comment
Brett

Disney bought Marvel.

Marvel appeals to younger males (in mind and/or body).... (though not exclusively).

Fart apps appeal to younger males (in mind and/or body).

Thus Disney can cash in on fart apps and the only people who will ever know are the people who like fart apps.

April 08 2010 at 6:36 PM Report abuse rate up rate down Reply
badjoke

Am I correct in assuming these will just pop up regularly if an app opts in? I'll be in the middle of a game and an ad will cover my entire screen and break the flow of the game?

April 08 2010 at 6:27 PM Report abuse rate up rate down Reply
3 replies to badjoke's comment
Thomas

This should reduce the price of Apps. It will probably mean a lot more free apps. Also, developers might give people the choice of free with ads or paid without ads. Sounds like a perfectly reasonable move.

April 08 2010 at 5:28 PM Report abuse rate up rate down Reply
1 reply to Thomas's comment
Stupidhero

Thomas, most Devs will use Ads even in Paid apps, if apple allows them to.
That won't lead to a price drop, (at least in most cases), because the Ad income will be used for "financing ongoing developement" (of course it wasn't needed before, but with iAd it will be needed!).

The case where there will be a paid without Ads, and free with Ads will be rare (that's probably something you will only see in the highest ranked/most downloaded, to maximize profit)

April 08 2010 at 5:52 PM Report abuse rate up rate down Reply
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