Recently, Google pointed out the robust competition in the mobile ad space with the entry of Apple. Apple announced its iAd platform this month, deciding to shift from Flash and switch to HTML5 for its iAd platform. This move comes as a surprise as it will be an absolute task for Apple to get business from ad agencies.
The iAd platform will be housed in the next gen iPhone that will be probably launched in June. As the time available is short, Apple is already contacting ad agencies to customize and sell ads using the iAd platform. But, still this new advertising platform is tipped to kick-start the mobile marketing revolution.
The iAd will allow the marketers to provide more integrated interactive as well as full screen content for iPhone users. When asked about the views of financial community on the iAd whether to view it as a break-even business like iTunes and the App Store or a potential profit center. On this, Apple CFO Peter Oppenheimer said that they were about to put their toes in water and added that they didn’t had high expectations for this year. He further added that this iAd platform will make them learn a lot and will build a strong foundation for the future.
The iAd has promised to the developers about a tool that will insert rich media advertising in their iPhone applications. This will provide a more interactive and appealing user experience as compared to rival mobile ad efforts. The plan is pretty simple – for selling and hosting the ads, Apple will retain 40 percent of revenues whereas the remaining 60 percent will go to the app developer.
All the information about the iAd functioning is not yet public. However, Hill Holiday has said that in the initial period Apple’s iAd team would make all the ads required and iAd SDK release will follow.
