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Apple rumored to introduce iAd App Store service on April 7th

post #1 of 61
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Apple's plan to muscle its way into the mobile advertising market in a direct challenge to Google could come as early as next month in the form of a service dubbed "iAd," according to a published but vague report on the matter.

Citing an unnamed executive familiar with the plans, MediaPost claims that Apple chief executive Steve Jobs has been touting the upcoming service, rumored to launch April 7th, as "revolutionary" and "our next big thing" amongst his inner circle. No further details were reported.

Still, it's expected that the service will leverage assets and personnel acquired by the iPhone maker in its January buyout of mobile advertising firm Quattro Wireless for $275 million. The acquisition came on the heels of a $750 million purchase of rival mobile ad firm AdMob by Google, which reportedly outbid Apple on the deal.

When asked about the company's acquisitions of Quattro and the Lala music service during the company's first quarter earnings conference call, Apple's chief financial officer Peter Openheimer said, "In terms of Quattro and Lala we acquired Quattro because we wanted to offer a seamless way for developers to make more money on their apps, especially free apps. We acquire companies from time to time for their technology and talent, that's why we do it."

Apple has never run an ad business before, but it has also never really had a captive platform to sell any advertising before either. The company briefly flirted with adding banner ads to its Sherlock search app a decade ago before abandoning the idea. Since then, it has focused on selling its own applications and its iTunes media partners' content as ad-free rather than chasing the idea of ad-supported media models.

This, however, enabled Google to remain focused on creating an open source smartphone monoculture around its own Android mobile operating system that would allow it to track and target mobile users with advertising. The search giant's goal is to expand its advertising monopoly into mobile devices and become the next Microsoft of smartphones, except that it will be collecting revenues for ads and paid search results rather than licensing software as Microsoft had.

For its part, Apple operates the world's fastest growing mobile platform and retains a tight relationship with its iPhone developers, who can currently only publish their apps through iTunes. By offering these software makers integrated advertising services, its believed that Apple can get started in the mobile ad business and quickly catch up with Google's own fledgeling mobile efforts.

In a report published back in January, people close to Apple's Jobs said the company co-founder hoped to "overhaul mobile advertising in the same way they had revolutionized music players and phones." Details were again scarce, but it was speculated that Apple could rely on user data collected through iTunes and the App Store, along with geo-location technology due to GPS in the iPhone, to create targeted, local advertisements that would be more relevant to consumers. The company could also utilize gimmicks, such as having users shake their iPhone to win a prize.

"Some developers have profited by embedding ads in their apps, but the payments tend to be insignificant since the ads are usually smaller, less effective versions of their Web banner forms," the report said. "According to a source familiar with his thinking, Jobs has recognized that 'mobile ads suck' and that improving that situation will make Apple even harder to beat."

"Apple has a vault of valuable data that can help drive an ad business," the report added. "It knows precisely which apps, podcasts, videos, and songs people download from iTunes; in many cases it has detailed customer information such as credit-card numbers and home addresses. That gives Apple a chance to blend advertising and e-commerce in new ways, particularly after the acquisition of Quattro."

For Apple, the market and opportunity already exists, which should allow the company to focus primarily on execution. As of 2007, the company said it had more than 500 million active iTunes Store account holders, a figure which has surely grown substantially since then. It's bounty? A mobile online advertising market worth $2 billion annually and growing.
post #2 of 61
Just the other day I was trying to imagine what Apple's take on ads would be. The only thing that I find a bit odd is the fact that Apple has only had Quattro since January. What could have been done in that time? The only thing I can think of is that Apple had been working on this idea for a while, and then just looked for a company that would allow them to implement the plan.
GIGO. The truth in all of life.
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GIGO. The truth in all of life.
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post #3 of 61
Ads with . . . the User Experience in mind! I'm lmao, and peeing a bit too.
post #4 of 61
Now waiting for the day that Apple will reject Apps from the Store which are using AdSense/AdMob instead of iAd...
post #5 of 61
Big Brother Apple

No wonder they want the App Store ecosystem, makes it hard to install third party software to block all their trackers.

Install a "outgoing network connection" detector on your Mac and be shocked, see MacUpdate.
post #6 of 61
Quote:
Originally Posted by SpotOn View Post

Big Brother Apple

No wonder they want the App Store ecosystem, makes it hard to install third party software to block all their trackers.

Install a "outgoing network connection" detector on your Mac and be shocked, see MacUpdate.

Big Brother? Hardly. it's a tech company that sells a product. You can leave at any time. Door's always open.

The real Big Brother you need to worry about is government. Not so easy to pack up and leave that, now is it?
post #7 of 61
Quote:
Originally Posted by bongo View Post

Now waiting for the day that Apple will reject Apps from the Store which are using AdSense/AdMob instead of iAd...

Also I think so... \

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Creativity is just connecting things (Steve Jobs)
> > > My wEb SiTe < < <

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Giovanni B. Saccone
Creativity is just connecting things (Steve Jobs)
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post #8 of 61
Can iSubtract the iAd?

Ten years ago, we had Steve Jobs, Bob Hope and Johnny Cash.  Today we have no Jobs, no Hope and no Cash.

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Ten years ago, we had Steve Jobs, Bob Hope and Johnny Cash.  Today we have no Jobs, no Hope and no Cash.

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post #9 of 61
With 100 million + handheld OS X devices already in the hands of the world's wealthiest consumers, and at least 50 million more going out every year, this will be a prime market for advertisers.

With a slick implementation in the SDK, app developers would start using an Apple ad system right away.

The fact that Apple actually knows something about it's consumers (precise physical location, psychographics based on apps/music owned) is a big bonus (Google's setup can't target consumers based on anything other than the searched-for term and a vague sence of location based on IP numbers).

Apple could take a good chunk of the search market if they tried. But they could take the whole mobile 'content network' / in-app / in-publication ad market if they do it right. That's where Google's approach has been a failure. It just disen't deliver results for advertisers.

Plus the entire ad industry uses Macs. There's a comfort level there already.
post #10 of 61
The naming is just ridiculous. i i i i i i i... can't hear these egocentric and stupid product names anymore.
post #11 of 61
So is there going to be an Apple Event on April 7th to introduce iPhone OS 4.0 SDK? As well as new MacBooks?

If so, the invites should go out this Mon or Tues.
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"you will know the truth, and the truth will
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post #12 of 61
Perhaps this was the reason for the anti-Flash shtick that Steve Jobs was doing for a while. While I agree with Steve's stance on Flash, however, I am not so sure about this iAd thing. Doesn't seem like a computer company would delve into that industry, too.
post #13 of 61
Quote:
Originally Posted by Smiles77 View Post

Just the other day I was trying to imagine what Apple's take on ads would be. The only thing that I find a bit odd is the fact that Apple has only had Quattro since January. What could have been done in that time? The only thing I can think of is that Apple had been working on this idea for a while, and then just looked for a company that would allow them to implement the plan.

Well said!
post #14 of 61
Quote:
Originally Posted by mark2005 View Post

So is there going to be an Apple Event on April 7th to introduce iPhone OS 4.0 SDK? As well as new MacBooks?

If so, the invites should go out this Mon or Tues.

That would be what concerns me more. I'd also like to see Apple leverage this in something like MobileMe. Free with targeted ads and pay for no ads. That can be good way of leveraging MobileMe with iTunes and streaming of online media with their purchase of Lala and the massive server farm they have built in NC.
post #15 of 61
I want the ability to turn that hsit off!!
2011 13" 2.3 MBP, 2006 15" 2.16 MBP, iPhone 4, iPod Shuffle, AEBS, AppleTV2 with XBMC.
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2011 13" 2.3 MBP, 2006 15" 2.16 MBP, iPhone 4, iPod Shuffle, AEBS, AppleTV2 with XBMC.
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post #16 of 61
Quote:
Originally Posted by disposableidentity View Post

With 100 million + handheld OS X devices already in the hands of the world's wealthiest consumers, and at least 50 million more going out every year, this will be a prime market for advertisers.

With a slick implementation in the SDK, app developers would start using an Apple ad system right away.

The fact that Apple actually knows something about it's consumers (precise physical location, psychographics based on apps/music owned) is a big bonus (Google's setup can't target consumers based on anything other than the searched-for term and a vague sence of location based on IP numbers).

Google could get GPS and apps-bought info through the Android handsets and Android market. The Apple advantages are really only the iTunes content and the headstart of having 7x the number of devices already out there.

Quote:
Apple could take a good chunk of the search market if they tried. But they could take the whole mobile 'content network' / in-app / in-publication ad market if they do it right. That's where Google's approach has been a failure. It just disen't deliver results for advertisers.

I don't think so. It's not that easy to build a good search engine as you need scale to help refine results. Google is certainly not a failure in the PC market and I wouldn't yet say they are a failure in the mobile market as it's just getting started.

That said, the AdMob acquisition still hasn't received government approval.
"you will know the truth, and the truth will
set you free."
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"you will know the truth, and the truth will
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post #17 of 61
Quote:
Originally Posted by Quadra 610 View Post

Ads with . . . the User Experience in mind! I'm lmao, and peeing a bit too.

So ads they don't appear then.
Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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post #18 of 61
Quote:
Originally Posted by Rot'nApple View Post

"Beware the Prophet seeking Profit!" - Dennis Miller

"Beware the fool who follows not his own advice and ignores the handwriting on the wall" - me

Do you think that those who spend millions of dollars propagating the "skeptic" point of view are not in it for the money??

Otherwise - clever post.
post #19 of 61
Quote:
Originally Posted by Rot'nApple View Post

Can iSubtract the iAd?

For a fee, sure. Lets not forget ads are usually centered around free apps.
Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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post #20 of 61
Quote:
Originally Posted by TiAdiMundo View Post

The naming is just ridiculous. i i i i i i i... can't hear these egocentric and stupid product names anymore.

Egocentric? I don't get that. Anyway, not that I like ads, I don't. But I think the name iAd is cute.

Tap that iAd on your iPad, lad
Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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post #21 of 61
Quote:
Originally Posted by mark2005 View Post

So is there going to be an Apple Event on April 7th to introduce iPhone OS 4.0 SDK? As well as new MacBooks?

If so, the invites should go out this Mon or Tues.

Jumps to conclusions.
Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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post #22 of 61
Quote:
Originally Posted by 8CoreWhore View Post

I want the ability to turn that hsit off!!

You'll have that. It's called not buying the free app.
Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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post #23 of 61
Quote:
Originally Posted by juliasandrick View Post

Wow ! Now Apple is going to take their hands in the Ad market too. I can only imagine the ads that are coming soon at 7 April onwards.


This will be the greatest thing since the iPhone for Apple's profits, which they will plow into R and D, resulting in us getting more and better Apple iStuff!

I'm glad that they are doing this!
post #24 of 61
Oh God. Yet more advertising? Just what we need, sucking up your bandwidth and using up more of your monthly allowance. Next you won't be able to run apps unless you have a live internet connection so you can get crap downloaded to annoy you. they say you data plan is "unlimited" but that's not going to last.

Just picture how much fun it will be if you are listening to a song, then when the song ends you get a blaring advertisement before the next song starts.
post #25 of 61
iGag.
post #26 of 61
I'm really not in favor of the move toward targeted, location-based ads, at all. Some of you think this makes them "better" because they're "more relevant". I think it makes it worse, because neither google nor apple should know where I am or what I could potentially buy....but just buying into their ecosystem seems to void my rights in that regard, apparently.
post #27 of 61
For free apps and things like foursquare I don't mind ads. Just like I don't mind the sponsored links when I use Google.

For paid apps or as part of the OS or core browser functionality that would be annoying.
post #28 of 61
Since the birth of the internet I think I've clicked on a banner ad 5 times and have never purchased anything as a result of seeing one.
post #29 of 61
Quote:
Originally Posted by old-wiz View Post

Just picture how much fun it will be if you are listening to a song, then when the song ends you get a blaring advertisement before the next song starts.

Doesn't Pandora already do this? I don't have an iPhone/iPod touch, but I know that when I listen to Pandora on my browser, I get audio ads from time to time.
post #30 of 61
Quote:
Originally Posted by AppleInsider View Post

Apple's plan to muscle its way into the mobile advertising market in a direct challenge to Google could come as early as next month in the form of a service dubbed "iAd," according to a published but vague report on the matter. ...

It's looking more and more like the iPad and web advertising is going to drive a whole new wave of jailbreaking. Apple just doesn't seem to get how opposed many of their customers (especially outside of the USA), are to this kind of captive "can't opt out" advertising.

If I can't block ads on the web while using the iPad, then there is not much point in using it for web browsing at all.
post #31 of 61
Quote:
Originally Posted by bdkennedy1 View Post

Since the birth of the internet I think I've clicked on a banner ad 5 times and have never purchased anything as a result of seeing one.

Ditto. I think I clicked on an ad once by mistake but I can't remember intentionally doing so.

I've always wondered who those people are that actually read an ad, then think "Gee, I should click on this and see what they want to tell/sell me." It boggles the mind that people are so uniformly foolish.
post #32 of 61
Quote:
Originally Posted by juliasandrick View Post

Wow ! Now Apple is going to take their hands in the Ad market too. I can only imagine the ads that are coming soon at 7 April onwards.

A free fart app with an ad for Gas-X.
post #33 of 61
I just want google to get its ass kicked and be a little more humble. Google as recently gotten into the habit of releasing products that werent ready. Thinking their name would carry the technology. Google adsense is also a monopoly and they can muscle their way into the thought that hey its either them or nothing. Though there is yahoo but not much of a competition. If you cant google something then chances are your site traffic is not significant or at least as high as it can be. So god forbid they do something to their search technology that changes your pagerank and destroys a small business.

As apple needs competition, if for nothing then just to be competitive and innovative, so does google. They need to be challenged in search and ad. They arent really being challenged in search. So I guess apple can challenge them in mobile search. It might not be a big part since the mobile search is 2 billion a year business and google earned 37 billion in revenue but at least it would give them some competition.

Competition is what leads to innovation without it we would not have the products and services and the gadgets we have today.


Quote:
Originally Posted by AppleInsider View Post

Apple's plan to muscle its way into the mobile advertising market in a direct challenge to Google could come as early as next month in the form of a service dubbed "iAd," according to a published but vague report on the matter.

Citing an unnamed executive familiar with the plans, MediaPost claims that Apple chief executive Steve Jobs has been touting the upcoming service, rumored to launch April 7th, as "revolutionary" and "our next big thing" amongst his inner circle. No further details were reported.

Still, it's expected that the service will leverage assets and personnel acquired by the iPhone maker in its January buyout of mobile advertising firm Quattro Wireless for $275 million. The acquisition came on the heels of a $750 million purchase of rival mobile ad firm AdMob by Google, which reportedly outbid Apple on the deal.

When asked about the company's acquisitions of Quattro and the Lala music service during the company's first quarter earnings conference call, Apple's chief financial officer Peter Openheimer said, "In terms of Quattro and Lala we acquired Quattro because we wanted to offer a seamless way for developers to make more money on their apps, especially free apps. We acquire companies from time to time for their technology and talent, that's why we do it."

Apple has never run an ad business before, but it has also never really had a captive platform to sell any advertising before either. The company briefly flirted with adding banner ads to its Sherlock search app a decade ago before abandoning the idea. Since then, it has focused on selling its own applications and its iTunes media partners' content as ad-free rather than chasing the idea of ad-supported media models.

This, however, enabled Google to remain focused on creating an open source smartphone monoculture around its own Android mobile operating system that would allow it to track and target mobile users with advertising. The search giant's goal is to expand its advertising monopoly into mobile devices and become the next Microsoft of smartphones, except that it will be collecting revenues for ads and paid search results rather than licensing software as Microsoft had.

For its part, Apple operates the world's fastest growing mobile platform and retains a tight relationship with its iPhone developers, who can currently only publish their apps through iTunes. By offering these software makers integrated advertising services, its believed that Apple can get started in the mobile ad business and quickly catch up with Google's own fledgeling mobile efforts.

In a report published back in January, people close to Apple's Jobs said the company co-founder hoped to "overhaul mobile advertising in the same way they had revolutionized music players and phones." Details were again scarce, but it was speculated that Apple could rely on user data collected through iTunes and the App Store, along with geo-location technology due to GPS in the iPhone, to create targeted, local advertisements that would be more relevant to consumers. The company could also utilize gimmicks, such as having users shake their iPhone to win a prize.

"Some developers have profited by embedding ads in their apps, but the payments tend to be insignificant since the ads are usually smaller, less effective versions of their Web banner forms," the report said. "According to a source familiar with his thinking, Jobs has recognized that 'mobile ads suck' and that improving that situation will make Apple even harder to beat."

"Apple has a vault of valuable data that can help drive an ad business," the report added. "It knows precisely which apps, podcasts, videos, and songs people download from iTunes; in many cases it has detailed customer information such as credit-card numbers and home addresses. That gives Apple a chance to blend advertising and e-commerce in new ways, particularly after the acquisition of Quattro."

For Apple, the market and opportunity already exists, which should allow the company to focus primarily on execution. As of 2007, the company said it had more than 500 million active iTunes Store account holders, a figure which has surely grown substantially since then. It's bounty? A mobile online advertising market worth $2 billion annually and growing.
post #34 of 61
Now this is a VERY big development. All the analysts talk about the possibility that Apple will introduce low priced iPhones and other devices in the future in order to further penetrate all markets by bringing down the cost of ownership of Apple products. Well, here is how they are going to do it. No, Apple isn't going to do it by cutting prices and thus hurting its margins and profitability...It is going to make the absolutely unbelievably ingenious move of building its subsidy model...but this time it will be with advertisers...So, they get the subside from the wireless providers. Now they will get subsidies from major national and international marketers such as Coke, Toyota, etc...by forcing those who want a lower priced iPhone, for example, to watch ads. Clearly there will be some sort of interactivity built into the ad so that it knows the user is paying attention...This is HUGE news and will have a very meaningful impact on unit sales across all mobile device product lines (iPhone, iPod, iPad). VERY VERY big.
post #35 of 61
Quote:
Originally Posted by Ireland View Post

For a fee, sure. Lets not forget ads are usually centered around free apps.

Quote:
Originally Posted by Ireland View Post

You'll have that. It's called not buying the free app.

I don't really disagree with you, but it's worth mentioning that there are already paid apps in the app store that still contain ads that cannot be removed. They aren't always just tiny or marginal ones either.

The (evil) "Shazam" app comes to mind for instance. You pay for it, but it has banner ads, and it's one of the most popular apps in the store.

As long as there are idiots who don't care, the advertisers will do their thing. The advertisers interest is pretty much diametrically opposed to the interests of the end user. As long as they can get away with stuff like that they probably will.
post #36 of 61
Quote:
Originally Posted by TiAdiMundo View Post

The naming is just ridiculous. i i i i i i i... can't hear these egocentric and stupid product names anymore.

I agree.... how about mePhone, mePod, mePad, meAd?
post #37 of 61
Quote:
Originally Posted by bdkennedy1 View Post

Since the birth of the internet I think I've clicked on a banner ad 5 times and have never purchased anything as a result of seeing one.

Me too....
post #38 of 61
I can never view the development of intrusive ads as a positive. This smells like the "slowing/termination of user functionality until user responds to ad" patent Apple filed not too long ago...

Of course, fanboys will spin it as a positive regardless, since Apple has their fingerprints all over it.
lmao internet
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lmao internet
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post #39 of 61
Quote:
Originally Posted by quinney View Post

A free fart app with an ad for Gas-X.

+1. Post of the day.
post #40 of 61
Quote:
Originally Posted by adamthompson3232 View Post

Now this is a VERY big development. All the analysts talk about the possibility that Apple will introduce low priced iPhones and other devices in the future in order to further penetrate all markets by bringing down the cost of ownership of Apple products. Well, here is how they are going to do it. No, Apple isn't going to do it by cutting prices and thus hurting its margins and profitability...It is going to make the absolutely unbelievably ingenious move of building its subsidy model...but this time it will be with advertisers...So, they get the subside from the wireless providers. Now they will get subsidies from major national and international marketers such as Coke, Toyota, etc...by forcing those who want a lower priced iPhone, for example, to watch ads. Clearly there will be some sort of interactivity built into the ad so that it knows the user is paying attention...This is HUGE news and will have a very meaningful impact on unit sales across all mobile device product lines (iPhone, iPod, iPad). VERY VERY big.

This is, indeed, an intriguing possibility.
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