BuzzIT: Buzz in Technology

Apple announced at WWDC 2010 that Apple’s attempt to break into ad business using iAd to make debut on 1st July. iAd is Apple’s mobile advertising network based on iOS platform running on Apple’s iPhone and iPod Touch. Apple unveiled iAd at its iPhone OS 4 meet in this April.

iAd is built right into iOS 4. Be it an app, or a video or a game, iAd allows iOS users to stay in their app while checking out the interesting ads or “using in-ad purchase to download an app or buy iTunes content.” They can go back to right where they were after dealing with the ads.

Apple said that

iAds combine the emotion of TV advertising with the interactivity of Internet advertising, giving advertisers a dynamic and powerful new way to bring motion and emotion to mobile users.

Steve Jobs had said earlier

iAd offers users a new way to explore ads without being hijacked out of their favorite apps.  iAds will reach millions of iPhone and iPod touch users—a highly desirable demographic for advertisers—and provide developers a new way to earn money so they can continue developing free and low cost applications.

Apple iAd’s Big Partners

Yesterday, at WWDC 10 Apple announced that ads in iAd will begin on July 1st with ad campaigns from the leading brands, like AT&T, Best Buy, Campbell Soup Company, Chanel, Citi, DirecTV, GEICO, GE, JCPenney, Liberty Mutual Group, Nissan, Sears, State Farm, Target, Turner Broadcasting System, Unilever and The Walt Disney Studios.

The leading companies that have joined hands with Apple on iAd expressed their excitement at the potential of iAds. Executive vice president and CMO, Citigroup said

iAd will allow Citi to reach millions of people on their iPhone and iPod touch. iAd gives us a remarkable level of creativity for creating ads to connect with our current and future customers in a more interactive style than ever before.

Rob Master, North American media director, Unilever said

iAd is going to revolutionize mobile advertising. With iAd, we’ve been able to create some of our most powerful and compelling ads ever. iAd is the perfect mobile format to reach and engage with our customers.”

iAd: Apple’s Yet Another Gold Mine

The potential of ads on mobile is huge. Apple revealed that iPhone/iPod Touch users have downloaded more than 5 billion apps from App Store till now. On an average, they spend 30 minutes per day using the apps. iPhone/iPod Touch users create new trends and share apps with their friends and family by creating a app based social network.

In the press release Apple said that

Apple has iAd commitments for 2010 totaling over $60 million, which represents almost 50 percent of the total forecasted US mobile ad spending for the second half of 2010.

Apple Vs Google

Apple and Google taking head on against each other by competing on each other’s core interests. Ever since Google got in to mobile business, things between Apple and Google are getting heated up.  Apple, after losing its bid on acquiring AdMob, announced iAd to directly take on Google in ad business.  After much speculations Apple added Microsoft’s search engine Bing as an option in Apple’s iPhone. Earlier at Google IO, Google’s Vic Gundotra had attacked Apple’ approach to getting into ad business with deals with big corporates. He said at Google IO keynote address

To have healthy ecosystem of advertising, you need advertisers. We have hundreds of thousands of advertisers. We are not new at this game. We are not working with a handful of partners and charging them a million dollars each to be part of our program.

Check here for more Google’s jabs at Apple at Google IO 2010.

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