Apple announces iAd digital advertising platform

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Friday, 9 April 2010

The battle over mobile advertising is gearing up between search giant Google and mobile market share holder Apple. With the ever increasing popularity of mobile internet usage we will see a huge shift in the way online content providers display advertising and both of these companies are investing heavily to get their piece of the pie.

This week Apple announced that it will be releasing a new platform dubbed iAd for its iPhone and iTouch applications. Steve Jobs said that currently the advertising framework for their applications spoils the user experience by redirecting them away from the application and into a browser window. They are developing a solution that is essentially an application within an application and can delivery several types of dynamic advertising content including games, video and audio. Jobs said that the average iPhone user spends 30 mins a day in applications which, considering apple has sold over 37 million units worldwide, is an absolute gold mine.

On first glance it seems that the user, who has already paid for the phone and a service provide, will be the one missing out yet again. However it does provide a large revenue stream for developers which hopefully means that we will see the Google ethos adopted more and more; quality apps free for the user, paid for by advertiser. 

We are yet to see a true response from Google on how they are going to deal with Apple "stealing" their territory. Things are going to get very interesting once iAd is up and running.

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