The article from the San Francisco Chronicle tells the story of one grateful iPhone app developer, Jason Ting. Apple’s newest creation, called iAd, starting rolling out at the beginning of this month. According to Apple, iAd gives brands what they’ve been waiting for: access to the global audience of iPhone and iPod touch users, enhanced targeting, premium creative, and robust measurement (http://advertising.apple.com/). Apple says that iAd reaches millions of iPhone and iPod touch users around the world, which is a highly desirable demographic for advertisers. Advertisers can now reach users within their favorite apps and with the iAd network, companies gain access to “the most engaged mobile audience out there” (http://advertising.apple.com).
According to Apple, iPhone and iPod touch users:
Have downloaded more than five billion applications
Spend, on average, 30 minutes per day using their apps
Set trends and share with family and friends
It is easy to see why such a program might seem highly profitable and valuable to both companies and developers. This is precisely what Jason Ting realized when his use of iAd brought him significant early returns. San Diego-based Ting boasts making $1,400 in iAd revenue in only the first day. Ting started selling his app on July 7th ; the app turns the LED camera flash on the iPhone 4 into a flashlight. The free version of the app is supported by iAds and had 9,000 downloads on its first day. The downloading frenzy helped LED flashlight for iPhone 4 (the title of the app) reach the number 8 spot on the free utilities page of the App Store, quite and impressive feat.
Here is a screen shot detailing Ting’s iAd revenue:
http://www.sfgate.com/cgi-bin/article.cgi?file=/g/a/2010/07/08/businessinsider-iphone-developer-brags-1400-in-iad-revenue-in-one-day-at-150-ecpm-2010-7.DTL#ixzz0tU77ivyX
This shows that the ads brought in $1372.20 in iAd revenue on 9,300 impressions on its first day. The click through rate was an astonishing 11.8%. The effective cost per 1,000 impressions (eCPM) was $147.55 which is approximately 50 to 100 times greater than the eCPM that some mobile ads bring in.
According to the article, Ting was very surprised with the numbers he received in the first day and he hopes they will continue. Unfortunately this is not very likely. He may experience high rates for a little while, but probably not forever. Right now, iAds are novel and as a result people are more likely to click on them to see what they are all about. Despite the fad, it was still a great day for one lucky developer and great press for Apple.
The introduction of iAds into the world of marketing is very significant. This is a new platform for advertisers to target and reach some of their best customers. iAds will work similarly to Google ads because they will give relevant information to customers within the app making them more likely to be interested and click. Advertising is not totally new to the world of mobile phones, but iAds offers developers rich media ad creation and a new way to reach consumers who they might normally miss.
The use of iAds is also important because it has the potential to offer marketers a new way of advertising digitally with significant click-through rates. Since most consumers are now desensitized to internet banner ads and pop ups, this is a way for advertisers to peak consumer interests in a new way. Also, the iAds are specifically geared toward consumer interests so they will be even more likely to click in comparison to a likely irrelevant banner ad on a website.
Overall, Apple has done it again with the introduction of iAds. The use of easy to use and easy to navigate advertisements within consumer downloaded apps is a refreshing new format of reaching consumers which is sure to change the way people do internet advertising and marketing. By injecting relevant ads into consumer content, advertisers will reap the rewards of higher click-through rates and developers will enjoy the benefits of increased ad click revenue, just like Jason Ting.
A sample of the iAd for the Nissan Leaf can be found at the following site:
http://www.macrumors.com/2010/07/01/apples-iads-slowly-begin-to-appear-led-by-nissan-leaf/
Article location: http://www.sfgate.com/cgi-bin/article.cgi?file=/g/a/2010/07/08/businessinsider-iphone-developer-brags-1400-in-iad-revenue-in-one-day-at-150-ecpm-2010-7.DTL#ixzz0tU77ivyX
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