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
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  • rallstarz - Tuesday, June 22, 2010 - link

    Forgive me for peeking at your email Anand, but I'd be excited about a fro-yo review on anandtech.... maybe fro-yo making machines, fro-yo flash freezers, fro-yo dispensers...
  • Stuka87 - Tuesday, June 22, 2010 - link

    Over all I like the upgrade. My phone feels more snapping in several areas (3GS). However, I have two big issues.

    1: In Mail, I want a "Mark All Read" option. I tgets *SO* old having to go through 30-40 emails because I read them on another device. Not an issue with my Exchange mail, but is a major issue with my POP3 mail.

    2: I wish I could exclude some apps from multi tasking. Because now I find myself running 4-5 apps at the same time. And most of them are apps that don't need two. Like weather, or calculator. I would love it if I could say "Dont ever multi-task this app". The same could be applied to some games.
  • metafor - Tuesday, June 22, 2010 - link

    "We still need faster SoCs and more power efficient platforms to make multitasking work on smartphones. I say faster SoCs because one of the best ways to improve power efficiency is to complete tasks quicker so that the CPU can return to an idle state.

    Because current smartphone SoCs don’t have the level of performance needed to quickly execute a ton of extra instructions and get back to sleep, smartphone OSes have to keep background tasks to a minimum. For the most part you don’t have to worry about what applications you have open on your notebook, your CPU is efficient enough and you have enough battery power to churn through any instructions idle apps may be throwing at it. We’re not quite there yet in smartphones."

    I'm afraid this isn't true. The only difference between a netbook processor and a smartphone processor is that the former is running off of a relatively honking battery. Having the CPU "finish the task faster" is absolutely not a power advantage.

    Let's break down the 2 main areas of power usage for a CPU:
    1. Leakage. Here, you can make the argument that if a CPU is active longer, it suffers more total energy that is leaked between VDD and GND. However, this is almost entirely offset and in most cases overshadowed by the fact that a faster CPU (running either at a higher frequency, has more parallel execution resources, or runs on faster transistors) will always be significantly leakier than their slower counterparts. Leakage increases with the square of voltage and as everyone will tell you, when a CPU ramps up in frequency, it will scale up its voltage.

    2. Dynamic current. This only gets worse at faster frequencies. Whether you're charging/discharging 500 million times a second (500MHz) or 1 billion times a second (1GHz), the same tasks requires the same number of charges/discharges whether it happens in 1 second or 2 seconds. The same amount of energy to perform the work is used. However, as mentioned before, to make a chip run faster, you'll have to also up the voltage and/or use leakier (but faster) transistors.

    In fact, the argument for dual-core being more power efficient is that in the case where 2 cores running at 500MHz doing the same amount of work (assuming you're running, say, 2 tasks that would otherwise be context switched in the same CPU) as 1 core at 1 GHz, the 2-core solution would draw less power since a core running at 500MHz uses less than half the power of a 1GHz core.

    You are absolutely right in that the limitations of multitasking has to due with power efficient CPU's and it is a compelling argument for multi-core cell phone SoC's and perhaps even heterogeneous multi-core SoC's. Luckily, we'll be seeing those soon enough in the next year or so.
  • Matt Campbell - Tuesday, June 22, 2010 - link

    Angry Birds is a great game - but why do you have both the Lite and Full version installed in the screen shot? :)

    So far, my biggest likes of iOS4 are the responsiveness (3GS definitely feels faster) and the email threads, which really help on my Exchange account. I read a lot of eBooks on Stanza and will probably stick with that for the short term.
  • SunSamurai - Friday, June 25, 2010 - link

    Because he tried it before he buyed it? ;)
  • Polizei - Tuesday, June 22, 2010 - link

    I love that Anand is bumpin the 50 cent during his Iphone interview. Funny choice :D
  • synaesthetic - Tuesday, June 22, 2010 - link

    Anyone know if these ads show up on the iPod touch 3G upgraded to iOS 4?

    If so I probably won't buy a Touch...

    I don't understand why *anyone* would prefer ads to paying more for software. Seriously, it's not worth it to me. TV commercials are bad enough.
  • SunSamurai - Friday, June 25, 2010 - link

    You dont understand why people dont want to spend money when they dont have to?
  • jasperjones - Tuesday, June 22, 2010 - link

    tbh, I somewhat doubt it...
  • jay401 - Tuesday, June 22, 2010 - link

    iAds will probably be enough to keep me from getting the new iPhone to replace my current cell phone. i just don't trust Apple with that sort of power over my user experience.

    i dont want ads interrupting and distracting me from my task. i want to get my chosen task done efficiently and quickly.

    "If it wanted to Apple could even sell ads in books."

    Yes, if Apple wanted customers to drive to Cupertino to punch the iAds team directly in the face.

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