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iAd : Apple Goes At War With Google

Apple is gradually positioning itself as serious online advertising competitor to Google and to a lesser to Microsoft and Yahoo as it tries to corner the mobile ad segment with the new iAd platform.

The latter will blend together the interactivity of web-based advertising with the "emotion" induced by classic television ads. Apple's charismatic CEO demonstrated this with a X-Y graph with interaction and emotion on both axis.

Jobs was adamant that they would be able to do a much better job than existing mobile advertising firms, a clear dig at Google, before adding that "We think most of this mobile advertising really sucks" and that the firm could "make some contributions" (ed : and take some as well).

iAd will in effect be an integrated advertising solution since the iPhone user will be offered adverts inside the application itself, removing the need to launch a browser window altogether.

But that being Apple, expect adverts to be more snazzier and significantly more elaborate compared to the usual banner ads or "interactive" solutions currently on the market and one can expect that these adverts will sell for a premium.

Steve Jobs, Apple's CEO, said that the firm is not aiming to become a worldwide ad agency but given the signs, we beg to differ. Apple already said that it wants more than one billion ad impressions a day by the end of 2010.

With already 81 million iPad, iPod Touch and iPhone devices in the wild, one can reasonably expect that number to rise to 100 million by year's end; Jobs has also said that developers will be able to keep 60 percent of revenues with apple selling and hosting the ads.

Our Comments

A quick back of the envelope calculation shows that even with a low £2.50/CPM, Apple could stand at making more than £900 million worth of ad revenues by this time next year and could potentially snatch much more from Apple and other players in the market.

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