Apple Announces iAd for Mobile Advertising

by Michael Small | April 9, 2010 at 11:27 am

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Apple Enters Advertising Market with iAd

Apple announced it's iAd advertising software today, which could provide a huge boost to the mobile advertising market. Advertising agencies and developers are welcoming iAd with open arms, but warned that it could be an expensive endeavor.

Steve Jobs, Apple's CEO, promised the iAd network would provide new mobile adverts that were superior to the current product.

Announcing Apple’s first move into advertising on Thursday, Steve Jobs, the company’s chief executive, promised a new generation of mobile adverts that would be far more engaging than current formats, which he said “suck”.

The iAd network would create brand new types of ads for the iPhone, iPod Touch and the iPad, as Apple owns the operating systems for all those devices. Mobile advertising may own only a small corner of the market right now, but it's expected to grow exponentially as more and more people turn to handheld items for entertainment and functional use.

Apple Challenges Google with iAd

The iAd announcement from Apple is a direct challenge to Google over who will rule the mobile advertising world. iAd will allow Apple to do creative advertising that may even be able to run inside of apps, something that Google will be unable to do.

“From a developer point of view it’s fantastic,” said Magnus Jern, chief executive of Golden Gekko, a mobile applications developer. “It has lots of advantages because users don’t need to leave the app and there would be higher CPM [ad rates].

It is believed that the iAd will have potential to feature the first ads specifically designed for touch-screen smartphones.