iAds

With more developers and businesses taking advantage of Bluetooth beacons for advertising to nearby iPhone users, many consumers have concerns that the experience could be intrusive from an end user’s perspective. Apple Watch, scheduled for release later this year, could potentially add to that problem if Apple decides to allow iOS apps sending info to the smartwatch to also send advertising as we come in contact with beacons. It hasn’t yet, however, provided public details about what it plans for advertising on the device.

Despite the fact that there aren’t specific references to advertising in Apple’s guidelines for app developers building features for Apple Watch, a couple companies have already announced plans to deliver ads to the device. But do they know something we don’t? Or has Apple not yet made up its mind regarding what it plans for advertising policies on the Watch ahead of a launch expected in the next couple of months?

Sources at large advertising companies tell us Apple is being very cooperative, but that the company hasn’t relayed anything in the form of final guidelines.
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When Steve Jobs said something was going to happen, it generally did. One notable exception, though, has been Apple’s mobile advertising platform, iAd. Jobs said back in 2010 that it would grab 50% of the mobile ad market; right now, it’s sitting at just 2.6%. That may be about to change after advertising middleman Rubicon announced that automated purchasing of iAds will soon be supported … 
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[youtube=https://www.youtube.com/watch?v=Nu9pt9QG4gA]

I’ve covered App.io a few times in the past. The service, which allows app devs to deploy fully useable HTML5 demo versions of their native iOS apps on the web, first launched under the name “Kickfolio” back in 2012. The goal for the company was originally to let devs bring demos of their apps to promotional webpages and it eventually expanded the platform to include Facebook and other channels. Today, and around 2 million interactive app demos later, the company is announcing that it’s bringing those same app demos directly to mobile devices as interactive ads.

The ads go a step beyond the interactive app-like experience that Apple promised, but never quite delivered, with iAd, and allows users to play a demo of the app before deciding to purchase/download or even visit the App Store at all. The ad starts off as a banner or like any other ad but turns into a demo version of a native iOS app that is fully playable for a set period of time before prompting the user to visit the App Store. The company tells me in its initial tests it saw “3-5x higher conversion rates than normal mobile ads.”
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Adweek is reporting that Apple is focusing the iAd sales department almost exclusively on iTunes Radio, rather than developing its in-app ad portfolio, which is how the service originally started. According to the report, Eddy Cue told the advertising unit that iTunes Radio advertisements are a top priority, presumably as Apple is preparing to expand the music service into more countries next year.

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iTunes Radio, Apple’s upcoming streaming music service that will compete with services like Pandora and Spotify, will be partnering with large brands for audio and video advertisements, according to a new report by Ad Age.

The service, which will be available on all iOS devices – including the Apple TV – and every computer that can run iTunes, will be ad-free for subscribers of Apple’s $24.99/year iTunes Match service, but otherwise “users will be served an audio ad once every 15 minutes and one video ad every hour”, according to Ad Age’s sources. “The video ads will only be served to consumers at times when they are likely to be looking at their device screen, such as immediately after hitting play or choosing to skip a track.”
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While Tim Cook didn’t seem to place too much emphasis on advertising being a core business for Apple when asked about mobile advertising during his recent D11 interview, BusinessInsider reports it has heard from sources that Apple is gearing up to launch an ad exchange service similar to recent efforts by Twitter and Facebook:

We heard it from an executive who is one of the biggest players in online advertising… an ad exchange would work by allowing advertisers to target users as they enter the Apple eco-system on their iPads, MacBooks, various web sites and apps. The system would alert advertisers that an Apple user arrived. Any advertiser tracking that user with a cookie (a piece of software that records previous web sites you’ve looked at) could then bid to serve an ad targeting that user.

When asked why Apple wasn’t making money off its mobile ad business in comparison to other companies such as Facebook, CEO Tim Cook told D11 attendees that the focus for advertising was making developers money, not Apple. Cook said the company would continue doing things in advertising only if it contributed to its developer community, but according to several execs in the advertising industry quoted in the report, Apple could have much bigger plans for its ad business in the months to come. 
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