Wednesday, 9 June 2010

Apple to Enter the Ad Business

Apple recently reached the 1 billionth app sold on its App Store. The lucky guy who downloaded the billionth app won a $10,000 iTunes gift card, an iPod touch, a Time Capsule and a MacBook Pro. That's a nice way of gaining fidelity from customers! More recently the iPad was released worldwide and in a few moths the new iPhone will hit the markets. In a few words this means that people are going to download more and more apps. That's why Steve & Co. must have thought that it was worth milking the cow in as many ways as possible: for example, by entering the ad business.

Nowadays developers already put advertisements into their applications, but that's done in a kinda goofy and frustrating way. Every time you mistakenly press with your finger on one of those stupid banners contained in the apps you are ripped out of the app and taken into the browser into a page that you could not care less about. The result, as mentioned by Jobs himself, is that people do not press on the banners.

Apple decided to develop a way in which it could be possible to see ads by remaining in the app. The ads are going to be interactive, emotionally engaging and very easy to develop. Steve jobs recently showed in a presentation how the new ad platform is going to work; strangely enough the ad used for the demo was the ad for the new upcoming Toy Story 3 produced by Disney Pixar (Jobs sits in the board of directors) which as humbly admitted by Steve is "awesome" and "really good".

Developers will get the 60% of the revenues from these ads; the rest will probably go into Apple's safe. Given the huge number of apps sold by the Cuppertino company this may be a good move. Moreover, this is going to help developers to make some money so that they will keep developing applications, maybe make some money out of it and - most of all - prices wil remain reasonably low for consumers.

If you are interested in learning more about Apple's (well, Steve's) vision of the future you can give a look at the videos of this year "All Things Digital" conference (covered by yesterday's Wall Street Journal). Here Steve talked about why he believes the iPad is the first step towards the end of traditional PCs and about Apple's idea to enter the ad business. Also present at the conference were other big fishes such as Facebook's Mark Zuckerberg, James Cameron, Steve Ballmer, etc... . If you want to see the videos you can click here. Enjoy!