AdAge: iPhone’s big, but Apple’s App Store is real game changer; opens up major ad opportunities

“OK, so the iPhone’s getting all the consumer and consumer-media hype. But for the tech in-crowd and savvy marketers, it’s Apple’s new App Store that’s capturing the imagination,” Abbey Klaassen reports for AdAge.com.

“The store, part of the latest version of iTunes, allows iPhone users to download applications, little programs that sit on the device and update even when the internet browser is closed. The store lets people fill the phone with useful programs and has the potential to make good on what many have long promised the smart phone would be: a personal computing device. And along the way it will open up major advertising opportunities around some of those apps,” Klaassen reports.

“To understand the concept of the App Store, look no further than the iTunes store. Digital music exploded when Apple launched iTunes as an easy way to buy and download music to an iPod. It hopes to do likewise for mobile applications through the App Store — and that kind of simplicity is the real game-changer,” Klaassen reports.

“The App Store will offer one more way for marketers to get at that valuable iPhone-carrying audience because while some of the applications will cost a fee to download, about 25% of them are free — and many of those will count on ad support as their primary revenue source,” Klaassen reports.

Full article here.

[Thanks to MacDailyNews Reader “Bryan H.” for the heads up.]

24 Comments

  1. Actually I’m HOPING to pay for a product which will continually stream web popups and SMS ads to my phone, as well as leave voicemail about new products.

    $29.99 sounds about right. I think an adware product like this is what the iPhone really needs to be able to compete with the desktop functionality and speed of Windows 2000.

  2. “And along the way it will open up major advertising opportunities around some of those apps,” Klaassen reports.

    @WTF, I agree.

    Hey Abbey, I’ve got an ad for you… SUCK MY ASS!!

    ’nuff said, bitch.

    MaWo: ‘true’. Yup.

  3. Didn’t Napster make digital music explode? Even today whatever itunes sells pales what is consumed any given week / month on P2P, torrent, Usenet. What a moron.

    Just what Iphone needs to be even a better business tool .. push Ads! ..

  4. Why is App Store the game changer? My manager friend said she tried to use the browser or add stuff on her Crackberry from work she couldn’t do it. I showed her how to install an app on the iPhone, and her face lit up: “Wow, even I can do that!” She’s a total technophobe, but after 20 minutes she kept saying “I may have to get one of these!”

    Unfortunately I think sooner or later ads will find their way in. Look at the Bloomberg news service or AOL Radio (both free). If an app can fetch data, it can fetch an ad and display/play it somehow. Unless Apple carefully scrutinize every app submission and disallow it, it’ll be hard to stop.

  5. Just throwing an idea out there, but what if the “ads” were something like this? You’ve downloaded a city guide for a place you’re visiting, and you use it to pull up restaurants in a two-block radius. It shows you all the restaurants on a map, complete with user reviews. Some of those restaurants have purchased ads in the form of special deals or discounts if you give them a coupon code or something.

    Would that be an acceptable use of advertising? This is assuming, of course, that you feel like you can trust the overall content of the guide, regardless of whether businesses have placed an ad. I would think that a lot of businesses might appreciate such a hyper-local way of advertising, while the consumer, in theory, gets some discounts if they want.

  6. Now if I can just consistently finish level 7 on Super Monkey Ball I’ll be a happy camper. I never realized how clumsy I was until I started playing iPhone games. I also have Moto Racer but have only made it to the Rumble in the Jungle.

  7. And by the way, iPhone/iPod Touch are already hand held computers, the iPhone just happens to have telephony as an added feature. I’m beyond tired of the more-than-obsolete and definitely tired “smartphone” nomenclature.

  8. @ Mac+

    He’s not saying there’ll be ads in the iTunes app store. He’s saying that some of the free apps will be supported with ad revenue like the NY Times app ericdano mentioned. A better example is the Flickr client Exposure. You can pay for an ad free version of it or get the free version which does have ads. I’m using the free version right now (a lot in fact) but I’ve actually only seen two ads. Still, like most savvy consumers these days, I really, really f***ing hate ads.

  9. The comparison of iTunes to the App store is apt. The difference is that Apple won’t have to continuously battle with the major labels over the content in the App store. For good or ill, Apple will be in complete control. It’s a brave new world.

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