Apple Inc. has recently launched a new business venture – iAds. iAds, formerly Quattro Wireless, is essentially a form of mobile advertising, with the focus on mobile iPhone applications. This has come in response to Google’s buying out AdMob for Android applications. Being that mobile users, especially iPhone users, are buying applications in record numbers, particularly on the iPhone and Android platforms, enough exposure has warranted this endeavour by Apple.
Even with mobile devices growing in popularity, some skeptics are reluctant to put serious money into the mobile advertising medium, due to the market being “too new” to try out. According to Interactive Advertising Bureau of Canada, the entire mobile apps market was forecast to be just $18-million in 2009.
However, with anything new that is internet-related, the concept of these numbers mushrooming virally has proven in the past, and many advertisers have taken note of this. In fact, they have already purchased more than US$60-million worth of ad space in iAds, which Apple estimates will alone account for nearly half of the mobile advertising market in the United States in the second half of 2010.
In advertising, it is generally advisable to place ads any place that a large target audience is guaranteed. This has been seen with TV commercials and magazine/newspaper ads for over 60 years. For the past few years, Google, Yahoo, and Bing paid search advertising have been the most popular forms of mobile advertising, due to the amount of internet searchers worldwide. Facebook Ads, with Facebook having over 500 million registered users, have been around for the last couple of years, as has mobile paid search advertising.
With the amount of iPhone applications being downloaded daily, this only seems to be a natural progression on a historically tried-and-true business model. The way things look, this may be the new direction where advertising is going.