Apple introduced iAd

April 8, Apple introduced the public its mobile advertising system iAd. It differs from the systems of competitors (eg, AdMob from Google) is that iAd integrated directly into the operating system iPhone OS. Moreover, these ads will be placed on servers Apple. Advertisements will be interactive and its structure will resemble the small "applications in the annex. It is already known that some of them will be created using the technology of HTML5. In the framework of Apple business model, the developers of these applications will receive only 60% of the proceeds from advertising on iAd. The platform will debut this summer.

System iAd, I note, personally announced CEO Steve Jobs. According to him, the average user of the device on iPhone OS works with about half a day. Accordingly, when a demonstration ad every three minutes it is about a billion hits a day.

Jobs in his speech cited the following figures: today issued 50.7 thousand games and other entertainment applications for the iPhone, iPod touch and the iPad, about 4,3 thousand applications for portable gaming consoles, Nintendo DS and the family of 2,5 thousand - for the Sony PlayStation Portable. When they will be integrated with iAd, advertising system will automatically become a new major source of income for most "apple company", and application developers.

The presentation iAd Jobs also said: "The personal computer the best place advertising are the search results. However, owners of mobile devices, use the search function is less than the applications. So here best place to advertise are the applications. [...] According to our estimates, the average user spends 30 minutes every day to work with applications on your phone. If they put the ads and change it every three minutes, you get 10 hits per day and 100 million units - one billion hits. This is a huge market with enormous potential for Growth.

Along the way, Steve Jobs rushed to assure the audience that Apple is not going to focus on the quantity of advertising, but instead intends to raise money by making advertising, according to Jobs, "a source of positive emotions."

Now the standard model of online advertising is as follows: click on the banner covers the application and start the browser. But this is inconvenient, and because many users avoid viewing advertising links. However iAd platform will be integrated directly into the operating system, and hence will run ads directly within the application. Incidentally, Apple engineers wanted to change the approach to the look of most commercial: it is proposed to use not only text and image links, and entire applications. In fact, advertising application will be embedded into other applications - such as games, reading room, RSS-clients and the like. Jobs said about this approach as a new form of advertising, which, finally, must not alienate the user, and therefore more costly, and advertisers.

Stop! That's where a dog and buried! Apple initially positioned itself as a seller of expensive advertising services targeted at an audience of wealthy Internet users. Indeed, when the U.S. came out first iPhone, statistics showed that the income of most families of the owners of at least $100.000 a year. Of course, since the phone has become much more accessible, but the iPhone and now are bought by people with incomes above the average, ready to regularly pay for new applications and accessories. That is, the audience of advertising services Apple more than solvent.

While the business model iAd not completely painted. In particular, it is not clear on what basis will be sold ads - whether it is payment for the number of impressions, clicks or actions of users. But it is obvious that Apple is acting fully in its tradition of working with content: the whole advertising system is the most centralized. All advertising content will be stored by corporations, advertising sales managers will also deal with Apple - that is, the company tries to control the whole process. However, to create advertising for the system iAd, as applications will be third-party developers and advertising agencies. Already announced that developers can integrate advertising system into your application in just a couple of hours.

I must say that the message is the creation of Apple's own system of mobile advertising iAd very impressed with the market analysts. It is clear that Apple has always disliked the fact that large advertising revenues from mobile advertising pass it. It is clear that, thanks to Apple in the business quickly enough to large advertisers. It is clear that Apple has implemented an ingenious scheme, when users iAd will not quit the application when clicking on the ad. But the main thing is not it.

The main thing - that Apple actually declared war on Google. Of course, at first glance advertising systems Apple and Google - are fundamentally different. Indeed, Apple has not yet engaged in advertising on the web-pages, and for Google is the main source of income. But who said that the system iAd will not be further deployed in the first web-applications, and then on the usual sites? All the same Safari browser is not as much and a small market share.

Well, Google over the last couple of years more and more clearly is betting on mobile devices. And soon, surely will active the proliferation of advertising in mobile applications for smart phones running the OS Android. It is likely that this is why Google has agreed to pay $750 million for the company AdMob, which specializes in mobile advertising. Still, it's not too typical - to pay for such a company several times larger than its annual turnover. Apparently, Google was fundamentally important to "take away" AdMob from under the nose Apple - recall that in April of this reluctantly, but nevertheless admitted by Steve Jobs.

So begins a great rivalry: Android v. iPhone OS, AdMob against iAd, Nexus One against the iPhone. Google has its serious ambitions in the mobile advertising market, the state is now, many experts compare to the "dawn Internet. Google's revenues in 2009 totaled $23.7 billion - and of these 97% yielded just online advertising. Now the Internet giant, clearly wants to start displaying ads in the results of Internet searches on cellphones, incidentally turning AdMob in a powerful new source of profit. After all, according to Gartner, in 2010 the volume of the mobile advertising market in monetary terms at $1.6 billion That's for the money and intend to fight Google and Apple.