iAd -- Is $60M A Big Deal?

Most of the news this morning at WWDC was around iPhone 4 and iOS 4. Will leave the new device and platform play to my colleague Charles Golvin. I can't wait to get one of the new phones . . . very slick as it looks like a mini iPad in a modified format.

iAd . . . $60M committed for the second half of 2010. Initial advertisers include: AT&T, Best Buy, Campbell Soup Company, Chanel, Citi, DirecTV, GEICO, GE, JCPenney, Liberty Mutual Group, Nissan, Sears, State Farm, Target, Turner Broadcasting System, Unilever, and The Walt Disney Studios.

Pretty impressive. How do they get to $60M? Rumor is that the minimum buy-in is $1M, but it goes up from there. They claim to have 50% of mobile ad market share according to a J.P. Morgan study. I think it is a bold claim unless this is purely the media spend and doesn't include creative. Our number is comparable -- but without creative. Advertisers can count on the buzz surrounding iAd's launch on July 1. That alone may justify the initial buy. These initial advertisers are a smart bunch. A few million dollars isn't much to any one of them, but these are sizeable buys for mobile.

I think there are a lot of interesting questions to be answered. Many will be "wait and see," but here's my wishlist:

- What do I get for $1M+ in mobile advertising? Am I buying creative, development, ads, and analytics?

- How much targeting do I get?

- Is it performance-based? Or CPMs?

- What will work well on the i OS4 devices? Branding? Or, will the ads leverage context -- the context of how, where, and when I use these devices? Will the ads drive me to online purchases or into a nearby store to make a purchase?

- How much control do I get over where my ads are placed?

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How Do I Get My Customers To Download My Mobile Application? -- ESPN Case Study

I get this question a lot from clients, and I saw a good example today so . . . I thought I'd share. How should we promote our services? Should we use TV? Online? Banner ads on cell phones? What is most effective? The high-level answer is "yes." Most of our clients are pursuing using their existing media -- whether it is ATMs in the case of Bank of America, the Web site for Walgreens, or TV ads by ESPN. Many are also using banner ads on the devices with which their devices are compatible. For example, they buy iPhone ads because the audience is right, and they can connect into the App Store on the application page.

 

Was watching ESPN this morning and saw a commercial advertising mobile TV in preparation for the World Cup.

What they did right and what I liked:

1) Used their existing media (TV) to promote mobile services. They also used an "event" (= World Cup) as a catalyst to promote their mobile TV service. With the World Cup being played in South Africa, there will be games at night, during the work day, and at many other times when people are unable to sit in front of their TVs.

2) The ad on TV gave the viewer context. "When would I use this application?" "Where would I use this application?" The TV ad shows the person switching on mobile video when he gets out of bed, is in the bathroom brushing his teeth, parking his car, and at work. They also demonstrate the quality of the application with zoomed-in views of the video service.

Watching Video While Brushing Teeth

Watching TV at Work

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