Yes, I have an iPhone 4 and no, this is not a blog post to complain about it.
There’s plenty of news going on about the iPhone 4 recently and I’m sure we’ve heard just about enough. But instead of complaining, or venting, let’s take a look at the iPhone 4 from the critical eye of a marketer. What are the new features? What does the iPhone 4 have to offer?
Well, with its recent launch many people are starting to think of ways that the iPhone can make them money. Apps, mobile sites and QR/Text message codes are becoming all the rage, but not everyone knows the details or potential ROI on the iPhone’s newest feature: iAd.
Now we’re talking. iAd is an advertising system that occurs during the use of an application and allows application developers to earn extra money. The advertisements can be as extravagant or interactive as the developer or company hearts’ desire. This has companies scrambling to examine how this new feature could be used to market their products or services.
With that said, the public is starting to get their first glimpse of how much developers and companies are benefiting, maybe not from the antennas, but from this new technology. According to the Wall Street Journal, Apple is said to charge 1 cent per impression and $2 per click. Reported by businessinsider.com, app developer Jason Ting has recently come out with numbers detailing his financial gain from the use of iAd through his flashlight app. Here is what he got:
With Apple’s 40% cut, that means Ting received around $800.
The debate over iAd’s future impact in the industry is starting to take shape with people declaring the system a temporary novelty or a fad, which in turn explains the high eCPM. However, others aren’t so sure the feature is temporary. Some proclaim that iAd is here to stay with its indulging interactivity and potentially high return. One thing is for certain – this is a big hit with big companies. I’m talking about corporations, such as Dove and Nissan who have already signed on as users of this interactive advertising medium and many others are starting to follow suit.
However, I’m not so sure that this isn’t just a temporary fad to be like Facebook one day and MySpace the next. However, it is something that companies and marketers should take advantage of. Advertising has existed for thousands of years, from newspapers to radio to television to the Internet; mobile technology advertising is just another stepping stone to the next medium marketers will soon utilize. For now the conversation will continue and farther along the line we will see if iAd was worth skipping your turn in ‘Words with Friends’. And what’s a good blog without a good example to leave you with? Here is a video of Apple’s iAd and Nissan’s Leaf:
