iAds: More Significant Than You'd Think

This is quite possibly the feature with the most impact out of anything Apple announced in recent history. What’s the obvious next step when you’ve got the majority of the smartphone and tablet browsing populace using your closed OS? Show them ads.

On the iPhone it’s easier to read content in a well designed app than it is to use Mobile Safari to browse a web page. Once you’re in an app however you lose all web advertisements, but your attention is still held captive by whatever is going on in the app. This is where iAds come in.

Apple now has its own advertising network and it’s a big one at that. There are nearly 100 million devices that run iOS in the world today and no other non-independent (read: Google, HTC or Microsoft owned) network is allowed to run ads inside iOS apps. All the developer has to do is allow ads and the rest is handled by Apple. Apple will sell the ads and share some percentage of the revenue with the developer.

The idea here is that iAds could allow developers to keep the prices of their apps low while still making enough money to continue to operate. Assuming the revenue is high enough, iAds could eventually be a significant source of advertising revenue for content providers as well.

If it wanted to Apple could even sell ads in books. It’s not too far fetched to see a contextually relevant iAd popping up while you’re reading something in the iBook reader. And Apple controls the entire platform so there’s no hope for an iAd blocker.

Given Apple’s focus on maintaining user experience I wouldn’t expect the company to sell tacky ads or make iAds too distracting. In fact, out of all of the ad networks out there, I’d trust Apple to have the end user’s experience/interests at heart more than anyone else.

If iAd revenue gets high enough, Apple could eventually drop the price on iPhones in order to get more advertising eyeballs.

This is a huge middle finger to Google. There’s no room for Google’s contextual ads within iPhone apps and Apple has already announced that Google-owned AdMob is forbidden from displaying ads in the iOS. If Android doesn’t equal the iPhone’s popularity Google will be at a significant disadvantage in the advertising space. By now it should be very clear why the two biggest smartphone platforms are competing so aggressively here. It’s not about selling phones, ultimately it’s about controlling mobile eyeballs for advertising. This is also what makes me the most uncomfortable about Apple. If we plot out a future where Apple controls the majority of the mobile market, controls all mobile advertising, and controls what apps you can run we’re yielding as much power to it as we have been giving Google.

Hating on Microsoft for being big brother was the thing to do in the 1990s, but what we’re creating here with Apple and Google has the potential to be much worse. I don’t need to point out the irony but we actually need more players in the smartphone space now to make sure that no one company gets too powerful. I’d say we’re already at that point with Apple and Google, we need Windows Phone 7 and MeeGo more than ever.

Multitasking iPod App Changes
Comments Locked

46 Comments

View All Comments

  • SunSamurai - Friday, June 25, 2010 - link

    Get over it. Its either ads or no free apps.
  • robco - Tuesday, June 22, 2010 - link

    AdMob isn't blocked from the iPhone, nor does Apple have a monopoly. Since AdMob is owned by Google, a major competitor with Android, there are some analytics Apple won't allow AdMob to access. If you think about it, this makes perfect sense, why give a competitor access to information on potential customers (who are presently your customers)? Developers can still use AdMob if they wish, they just won't get as much data.

    So far I haven't had many issues. I think we're still waiting for developers to catch up to the new OS. But it works like a charm on my 3GS. Folders is a little clunky, but I'm happy not to have to swipe across multiple home screens to access apps. As for the iPhone 4, the only real compelling feature for me is the new camera with flash. Since I have a 3GS, I'd have to pay through the nose to "upgrade" and I won't do that until LTE is rolled out and the iPhone supports it. Oh, and it's available on a network that isn't AT&T.

    Android is looking good, but Google does a horrible job with UI. I know they have UI designers working there, but it appears nobody at Google listens to them. Stock Android looks like Windows 3.1.
  • anandtech02148 - Tuesday, June 22, 2010 - link

    iAds sounds yuck, i'll keep my 3GS and the old os3xxx. another reason why iphone 3gs is so popular because it has a pirate community, reminder to the pc system where you where you have a vibrant thriving hacking community for warez, gamez,. apzz., Google Droid can go to hell, a billion dollars in marketing from verizon won't save you.. Look at Google trying to get back into China. what will hapen to Symbian ^3? nokia N8 looks appealing from hardware standpoint..but their software really needs refresing idea like Palm OS. Intel and Nokia are great hardware companies but software they really need a saviour.
  • haplo602 - Wednesday, June 23, 2010 - link

    wow, so Apple is finaly introducing basic features into it's sofware ... how suprising and inovative ...

    seriously ... I gave up in the middle of the article. there's nothing interesting in it. just the shock at people thanking Apple for providing basic features (ipod playlists FINALY editable, now that's groundbreaking).

    my age old HTC Herald can do all these things already a few years. Sure the HW is old and slow, but the functionality is still there.
  • Death666Angel - Wednesday, June 23, 2010 - link

    That a customer (and tech reviewer) can (blindly?) trust a company that is worth over half a trillion USD to look out for him is astonishingly naive, stupid, or malicious, possibly all 3 and even more.
    A company that has a proven record of shady decisions (we will ban this app, oh wait, it gets media attention, let's actually allow it!), shady handling of the press (accidental leaks, rumors, investigations), shady handling of its competition (violating patents, very closed system) should have the end users best interest at heart? Are you insane?
    After reading this and the Froyo article, I have deleted my AT bookmark and will refrain from coming here in the future.
    Good bye
  • buyaofeichu - Friday, June 25, 2010 - link

    (nike-alliance).(com),Inc. We are the best online dealer,about all kinds of nike.run retailing and wholesale trade wordwidely for years. Free Shipping And Customs,Super Sale Off Retailing,With 1Week Delivery to your door.
    jk

Log in

Don't have an account? Sign up now