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iAds could make a billion dollars, help Google make their deal

There's not a lot of details out about Apple's upcoming mobile advertising program, iAds, quite yet, but Broadpoint Amtech is already convinced it's a moneymaker. Analysts there say that the program could generate a whopping US$4.67 billion in revenue in just one year's time. Of course, that's a high-end guess, but even the medium figures are pretty amazing -- analyst Brian Marshall suggests that even conservatively, Apple could earn $2.48 billion. Realize what we're talking about here: this is more or less a from-scratch profit stream for Apple, and with developers receiving 60% of the revenue from iAds, Apple won't be the only company making money.

In fact, Apple's good news may benefit Google, too -- CEO Eric Schmidt said that Apple's iAds announcement should convince those concerned that Google's deal with AdMob is good to go, and that the two companies will just be one big player in "a highly competitive market." Of course, Google has a bit more advertising experience than Apple -- it made most of its $23.7 billion revenue last year from its online advertising model. While iAds sounds big, it's not quite that big.

Still, iAds will be big, and there's room to grow -- Apple is starting off with the mobile market, but don't forget that they've got a whole library of iTunes podcasts, and content space on AppleTV to sell as well. At this time next year, we might be reporting that Apple really has created a $2.5 billion-per-year income stream for themselves.


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There's not a lot of details out about Apple's upcoming mobile advertising program, iAds, quite yet, but Broadpoint Amtech is already...
 

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PaulsonApps

I am wondering how many of these comments are coming from people who play/use Apple's apps and how many people MAKE the apps.

I am a developer for the App Store and I appreciate the positive comments. As for the negative comments, it is sad that you want indie developers to spend hundreds of hours making a free application that you love to use, but you don't want them to get paid for it. You should tell your boss that you want to work for free for 4 months because you feel it is an inconvenience for him to pay you.

The ads are already in the apps! the only difference is that they will come from a Apple server and the developer will make 60% instead of 5-10% they usually get offered. They are the same size ads, going in only the free apps and only if the developer chooses to put them in. Apple does not tell us to put them in, we decide.

Who knows what iAds will be like...they are not out yet...but they are just taking what is already on the phones (ads) and giving the money to the developers...Not so bad.

No one likes ads, but they are here...and oh ya....google is going to put their ads on your Living room TV now....which I'm not bothered about ...but you would think the complainers would complain about that more so then on a free game you downloaded.

June 10 2010 at 10:21 PM Report abuse rate up rate down Reply
Loren

No one is "walking all over them with ads."  That's an insane conclusion exaggerated by using fear, it's almost manipulative.  The point is that any and all ads you get now should be a better experience for the user, if the developer so chooses to use iAd.  There is no conspiracy.  Instead of an ad taking you out of the app or the ad itself being something boring, it's making it so that the content is a little more interesting and engaging IF you do click on an ad and you can get right back to the app you were in very quickly.  Nothing wrong with that.  Everything you complain about is already happening now.  Ads are annoying whether or not iAd exists. 

As for your Google example, it's completely skewed.  I use Gmail, etc and it's just fine with the ads.  But on a smartphone with a super small screen in comparison to your monitor, even a "blue strip in the inbox" is going to be big.  Look at the mobile version of Gmail and tell me what you see.  Any ads?  No.  What if there were?  How do you think a "blue strip in the inbox" is going to look?

Jordan, if your twisted views bother you that much and you can't seem to see reason, then I have the best solution possible.  Don't buy Apple products.  That's the best way to show Apple you don't support them.

April 13 2010 at 12:11 PM Report abuse rate up rate down Reply
Kelmon

I was mostly interested to see just how much is possible with HTML5. While I remain unaware of the tools available to produce content such as that shown, plus how such tools compare to those made available by Adobe for Flash, I was genuinely surprised at how good they were and wondered whether this is another nail in the coffin for Flash.

April 13 2010 at 7:33 AM Report abuse rate up rate down Reply
Kelmon

I feel there is a very simple answer to this "problem": don't "buy" the ad-funded applications. If you are suddenly expecting to be swamped in advertising in applications that you have bought then I think it is time to consider this again. I really don't see paid applications using advertising (certainly I would not buy one that uses advertisements like this) so I don't see the problem here.

April 13 2010 at 7:02 AM Report abuse rate up rate down Reply
Loren

Advertising? In my iphone apps? I'll believe it when i see it. Meanwhile im going to play a few of the free and lite games from the app store.

April 12 2010 at 9:08 PM Report abuse rate up rate down Reply
Matthew_McCarthy

Ads are Ads.
Without out them nearly the whole of the American economy would collapse......CAUSE NO ONE WOULD KNOW OF THE PRODUCTS AVAILABLE TO PURCHASE!!!

If I can get an ad-supported App/Song/Movie/TV Show for free then I'm all in. Just because it's there doesn't mean you have to care.

April 12 2010 at 6:11 PM Report abuse rate up rate down Reply
Roberto

If you got the chops, shake them.

The stockholders expect no less.

April 12 2010 at 5:54 PM Report abuse rate up rate down Reply
SIP

I started typing a comprehensive response, then deleted and typed this:

Don't feed the troll!!

April 12 2010 at 5:31 PM Report abuse rate up rate down Reply
TIm

They should rather have spend some money on makeing the appstore a place where you can actually sell stuff at decent prices so developers wouldn't have to use advertisement to make a living. But with all this race to botton pricewise that is currently going on .. no wonder people need some extra funding.
How about creating a premium store. Stricter rules, no fart apps .. but some decent content for the money. Or how about trying out apps before I buy them? I would be much more tempted to spend my money then ..

And yes .. some people seem to think, that just because it is coming from Apple that these ads are going to stink less. Well I guess we will see.

T.

April 12 2010 at 5:00 PM Report abuse rate up rate down Reply
sodapop

"Seems like some are thinking that Apple is going to start putting iAds where no advertising currently exists."

My concern, personally. I don't know how to interpret iAd.... It sounded like all free apps would have ads... I am not particularly fond of ads in games and apps that are not news or blog content.

April 12 2010 at 4:48 PM Report abuse rate up rate down Reply
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