Skip to Content

WWDC 2010: More iAds details emerge

Steve Jobs said Apple created iAds to help developers make more money. The problem before iAds, to hear Apple tell the tale, had been that mobile ads on the iPhone were a bit of a kludge: different systems supported only basic interaction, they dumped you to Safari most of the time, and as each ad network does things differently, a developer wanting to make ad-supported apps had to do the math every time they signed up. With iAds, developers get 60% of the revenue generated by the ad in their app. They can pretty easily drop them into their apps because the system is built into iOS 4. But will anyone use them?

Advertisers are convinced they will. Quoting Steve via this morning's liveblogs, "So let me tell you some of the brands that will be advertising with us. Nissan, Citi, Unilever, AT&T, Chanel, GE, Liberty Mutual, State Farm, Geico, Campbells, Sears, JC Penny, Target, Best Buy, Direct TV, TBS, and Disney... those are some of the brands." Those are no small potatoes. At the keynote Steve demonstrated an iAd for the upcoming Nissan Leaf electric car. It's a compelling ad, to be sure, with an interactive signup feature and even a chance to win a car just through the ad. Steve went so far as to project that Apple would have 48% of the mobile advertising market locked up by the end of this year. That's the $60 million in commitments they've got so far and then some! Granted, this is all new movement, and the ad industry has been desperate for a new play lately, with most "standard" ads on the web being annoying or easy to gloss over. Ad execs are clucking their tongues over the richness of the iAds platform (while seemingly missing the fact that they could have always built engaging experiences on the web this way without resorting to Flash).

On the developer side... Well, I'll do a little informal polling whilst here in San Francisco. But I think Apple will make this so easy to do that it'll be an easy decision for developers ready to serve advertising. My only concern: will these ads be sucking up the precious bandwidth on AT&T's network, causing me overages on data? I guess we'll find out when the system launches July 1 along with iOS 4.

photo courtesy Engadget

Categories

WWDC

Steve Jobs said Apple created iAds to help developers make more money. The problem before iAds, to hear Apple tell the tale, had been that...
 

Add a Comment

*0 / 3000 Character Maximum Comment Moderation Enabled. Your comment will appear after it is cleared by an editor.

14 Comments

Filter by:
Craig

Check out iLineup Lite and let me know if you see the iAds

July 21 2010 at 1:19 PM Report abuse rate up rate down Reply
Akshay

I work in interactive advertising ("booo! hisss!") so I can imagine that my agency will probably be making some iAds in the very near future.

I totally agree with Kesey's comment though, from a agency perspective (and thinking also of our clients) what will hurt the entire platform is AT&T's decision to eliminate unlimited bandwith. AT&T probably did that because they knew iAds + no Verizon iPhone would lead to more people signing up on AT&T and there will be a large hit on bandwidth with integrated advertsing around the corner.

The bottleneck in this scheme will be caps on bandwidth, for the first month or two consumers will get slammed with higher bandwidth charges for the "privilege" of viewing ads and then they will get wise. I think that banner blindness will start to creep in quickly once users realize that these ads actually do have a very real price.

Still, even in 2010 people click on banners (unthinkable, but it happens). So this will make money for Apple (and AT&T).

June 08 2010 at 10:53 AM Report abuse rate up rate down Reply
Kesey

Who is going to use bandwidth from their no longer "unlimited" data plan to look at ads?

June 07 2010 at 10:24 PM Report abuse rate up rate down Reply
piminnowcheez

"will these ads be sucking up the precious bandwidth on AT&T's network, causing me overages on data?"

I keep hearing people express this fear or others that imply that iAds will mean big fancy video ads will pop out and play with no user consent, and I haven't seen anything to suggest this is true. Right now, ad-supported ads either just build in static text + image ads, or ads with links that give you the *option* of clicking to a web ad (thus Jobs' reference to "hijacking" you out to the browser). The only difference I see in iAds is that *if you click on the link*, you stay inside the app, and the ads are being served by Apple instead of whoever else. The draw on your data plan is no different than if you were downloading a web ad via 3G, which consumers with a clue probably learn quickly not to do.

Maybe I missed something, but if iAds really generated the equivalent of in-app, non-consensual pop-up ads, that also gobble data plan, that would seem to be such a quick route to consumer hostility that it's not the kind of mistake Apple would make in the first place.

June 07 2010 at 7:51 PM Report abuse rate up rate down Reply
Chuck McGinley

I can't believe people are in here defending iAds as a great feature. Or a feature at all !!!!! Folks, that's like saying you are REAL glad that comcast keeps adding shopping channels to their lineup and touting them in their guide as "channels". Great. What's next iAds HD!!! What a joke. Where is the cloud/WiFi freaking syncing!! It's free from google!!

What a disappointment today was. Yes I like the new phone, so don't bother on that front. But I wanted ONE announcement on the another front.

Chuck

June 07 2010 at 7:23 PM Report abuse rate up rate down Reply
mkvirt

and do we (it. "users") get the ability to shut these ads off? I left the Palm platform specifically because Palm embedded third-party ads into the Palm OS, destabilizing the whole machine. if i can't shut off the ads, Android will my next stop.

June 07 2010 at 6:42 PM Report abuse rate up rate down Reply
2 replies to mkvirt's comment
rene_malenfant

Have you ever even used an iPhone? There are already obligatory ads in numerous free apps. iAd is just an easier and more attractive way for developers to include them. If you don't want to see advertisements, your future solution is identical to your only current solution: just don't download the apps that have ads.

And since Google owns AdMob, you can rest assured that something similar is coming to Android soon. (And of course, many Android apps include AdMob advertising already.)

June 07 2010 at 7:44 PM Report abuse rate up rate down Reply
ilkyone

No, no... Let him go experience first hand why android is "free"

How did google explain it at Google I/O? Let me see... Google is in the business and only seems to make money selling ads... Oh that's right... froyo includes "unblockable" (google's word) ads.

Gotta love an ad company giving stuff for free...

At least apple makes its cash on the front end

June 07 2010 at 11:29 PM Report abuse rate up rate down Reply
Nick

I'm thinking that the vast, vast majority of iAds will be used to monetize otherwise free apps, or enable significantly cheaper versions of more expensive apps (i.e., iWork apps for $0.99 instead of $9.99).

Adding ads to normal paid apps would be a shot in the foot. Nobody's going to stand for it.

Question: if someone comes up with an ad-blocking app that runs in the background (thanks to multitasking!), will Apple allow it?

June 07 2010 at 5:44 PM Report abuse rate up rate down Reply
3 replies to Nick's comment
Trick

I think we'll see lots of these, like it or not. I also think they have the potential to be more interesting and fun, so maybe it won't be so awful... maybe.

Also, "Ad execs are clucking their tongues over the richness of the iAds platform" would mean they don't like the richness of the iAds. When you cluck your tongue it is in disapproval. Like "tut-tut."

June 07 2010 at 5:43 PM Report abuse rate up rate down Reply
ilkyone

Yeah, because flash for mobiles has been in existance for so long, right?

Announced last month and still in beta... Cooking eggs and hand warming seems to be all it's good for.

June 07 2010 at 5:42 PM Report abuse rate up rate down Reply
Buy an ad here

Tweets

© 2012 AOL Inc. All Rights Reserved.