Thursday 08 December 2016

How iAds are Advancing the Rich Mobile Advertising Landscape

The first display banner ad was served on hotwire.com in 1994.  The ATT ad asked users “Have you ever clicked your mouse right HERE?”  The ad started a wave that soon evolved to the first rich media banners in the early 2000’s.

Rich Media

Today, rich media is the norm, with a slight increase in serving fees, the value gained from incremental engagement over static display ads far outweighs the advertiser costs.  Time spent on a rich media banner is a metric typically more important than click-through rates.

But for mobile websites, ads are still fairly static, with most clicks (or taps) driving to a flat mobile website.

The iAd Arrives

In April, 2010, Apple acquired Quattro and launched their rich mobile platform, the iAd.  Steve Jobs introduced the platform in 2010, claiming that “most mobile advertising sucks”.  iAds weren’t the first to play in this space, but they did raise the game when large advertisers such as Nissan, GE, DirectTV and others signed on.  They’ve forced other rich mobile ad platforms to work harder to evolve their solutions to meet advertiser and consumer needs.

Until recently, the minimum buy for iAds was $1Million.  Only the top brands could afford to spend that amount to serve ads ONLY on iOs, and ONLY on ATT.

This changed when Apple announced cost changes to the iAd, which allow more advertisers to play in the space.

New Cost Structure Brings Changes

Three key changes that were announced with the new cost structure:

  1. The minimum buy is now just $100K, giving many more advertisers opportunities to purchase.
  2. There was a CPM + CPC model, making iAds much more expensive than other platforms.  They’ve removed the CPC, and now only charge per impression.
  3. Developers will now receive 70% of the revenue, an increase from the 60% previously.   With over 550,000 apps in the app store, expect more to begin serving iAds.

As smartphone usage and mobile browsing increases, it’s important to consider rich mobile advertising as part of your mobile strategy.  Although there are many other rich mobile platforms that work across more than just iOs, the other platforms have some technical and creative limitations.  To view some iAd examples, download the iAd gallery app in iTunes.

Image credit: Francisco Javier Argel

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