The opportunity of iAds

What do we think?

When iAds was launched earlier this year the Financial Times called me and asked what we thought about the announcement and it's impact on the industry. I said I was excited about the richness and simplicity and that I was convinced it would give the mobile advertising industry exactly what it needs in terms of strong backing (Apple) and setting a new industry benchmark.

Since then Apple has officially launched the product and sold inventory for about 40m USD so what do I think now? When should you use iAds?

iAds are fantastic in terms of attracting customers to engage with rich media. If you want guaranteed eye balls and engagement then iAds can be a great start. Especially now that media is excited about iAds and will write about it therefore generate positive PR.

Does iAds replace mobile apps?

In my opionion iAds replace mobile microsites and not apps. The advantage of apps compared to iAds are...

1. Apps are available offline and iAds are not
2. Apps can give you very low cost engagement per customer if you have a strong brand and/or concept, e.g. an app that costs 40k USD to develop and generates 100k downloads cost 0.4 USD per engagement vs 1 USD per click for iAds at the moment which would cost you 100k USD for the same engagement

How do you reach customers on other platforms such as Android and Blackberry?

Our expectation is that other mobile advertising platform providers such as Google and Microsoft will quickly follow with similar formats based on HTML5 and that mobile web and iAds will merge over time as the user experience will be almost exactly the same.

Posted by Magnus Jern CEO of Golden Gekko