Ad industry eagerly eyes Apple iPhone, iPod touch apps

“Where there are eyeballs, there are usually ads. And the most eye-catching gadget of late has been the iPhone, which can now run thousands of software programs available at Apple’s App store,” Michal Lev-Ram reports for Fortune.

“More than 100 million apps have been downloaded since the store launched in July, according to Apple (AAPL, Fortune 500). Those numbers have caught the attention of advertisers who see social networking widgets, restaurant locators, mobile games and other apps as prime real estate,” Lev-Ram reports.

“While just 20% of the more than 3,000 applications on the App Store are free, they make up 90% of the downloads. A growing number of them, such as popular mobile game Tap Tap Revenge and Pandora Radio, a personalized music service, are already experimenting with ads. Play a round of Tap Tap, for instance, and you’ll likely see a banner ad for Jaguar cars on the bottom of your screen. Both Best Buy and Beck’s have signed up to insert ads on Pandora’s mobile application,” Lev-Ram reports.

“Not only do the applications make it easy to zero in on a consumer’s interests, but Omar Hamoui, CEO of a mobile ad network called AdMob, says the iPhone’s touchscreen, built-in GPS and other features dish up more relevant ads. For example, iPhone owners might tap a banner ad for a restaurant that’s near their current location and it could provide turn-by-turn directions,” Lev-Ram reports.

“While some people may not embrace the idea of ads on their iPhones or Google phones, the trend also means that more apps will be available for free,” Lev-Ram reports.

More in the full article here.

[Thanks to MacDailyNews Reader “JES42” for the heads up.]

23 Comments

  1. Oh sure, muck up a pretty decent device with garbage advertising.

    They tried that with iTunes too.

    But just look at all the millions and billions Google is pulling in from ad revenue….

    …makes you wonder…slow economic times…slowing hardware sales…

    Of course AT&T;will want a cut…zzz

  2. Fsck advertising, I’d rather pay for the App than have to endure advertising on my iPhone.

    I’ve bought quite a few Apps because advertising crept in to the ‘Lite’ versions of the same App.

    Death to advertising!!!!!!!

  3. I deleted the NY Times app because it had advertising, and I don’t keep any apps that have it. I don’t need or want advertising wasting screen space and EDGE bandwidth. Apple customers tend to be at the higher end of the income spectrum, and I’d imagine most of us are willing to pay a little more not to deal with the hassle.

  4. Article says: “the iPhone’s touchscreen, built-in GPS and other features dish up more relevant ads. For example, iPhone owners might tap a banner ad for a restaurant that’s near their current location and it could provide turn-by-turn directions,”

    I keep my iPhone Location Services turned off except when **I** want it to be used. I hope Apple is smart enough to respect user preferences such as this and only let these viral apps use services the user has specifically authorized them to use, and only at those times the user has authorized.

  5. Clearly, nine out of ten iPhone owners prefer free over paid. It is possible that out of those nine, a few more would pay if that meant getting rid of the ads, if, in the future, those ads become prevalent in those free apps. Still, it is more than likely that even among the affluent Apple users, free will have strong appeal, ads or not.

  6. I work for an advertising agency so maybe my perspective doesn’t count. I agree that advertsing can suck. On the other hand it can enable certain valuable apps to exist that would otherwise not.

  7. Bubblewrap now has ads, so I’m not updating the bubblewrap app. if it gets to the point where it won’t work due to some iPhone update, I’ll just delete it.

    The thing that really annoyed me was for that app, under the “What’s New” section, the author conveniently omitted the fact that it now has ads. If app authors decide to put ads in their apps, they should fully disclose it in the What’s New section.

  8. Oh yes, puhleeez. Support AdBusters mag and start a world campaign to end intrusive advertising. Only the feeble-minded will fall for the ad man’s lying blurb. Ads add cost to everything you buy and they interrupt your enjoyment of movies and tv and more. Disagree? Then look forward to ads and billboards all over your sensescape and multiple kinds of sell noise that become the unending, inescapable soundtrack to your life. If you think you might look forward to all that noise, you really should get out more and make friends with your Self and get some signal into your life. If you get no signals, of course you will crave any noise.

  9. the iPhone’s touchscreen, built-in GPS and other features dish up more relevant ads. For example, iPhone owners might tap a banner ad for a restaurant that’s near their current location and it could provide turn-by-turn directions

    Bad idea.

    Do we really want “STOP HERE NOW!” popup ads from every business in an iPhone’s range? Hell no.

    If I need something I’ll do a locate. I don’t need popups to “help” with that.

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