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Digital News Roundup: April 9, 2010

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This week brought big news from Apple – first the public release of its new iPad tablet, and later an unveiling of the new iAd mobile advertising platform. Also making the headlines was a new report from the IAB and PriceWaterhouseCoopers that found that online advertising has surged back after losing steam last year. Read our complete roundup below.

Apple Unveils iAd Mobile Platform

On Thursday Steve Jobs announced iAd, Apple’s new mobile advertising platform. According to TechCrunch, Apple will sell and host the ads and share 60 percent of the revenue with developers. iAd placements will live within the mobile apps, and Jobs said developers can integrate them into their apps “in an afternoon.”

Image via CNET

“If you click on an ad now, you’re yanked out of your app. As a result, people don’t click on ads,” Jobs said at the iPhone developer preview event. “We have figured out how to do interactive and video content without ever taking you out of the app.”

Jobs demo-ed ads for Toy Story 3 and Nike, which incorporated interactive elements like games, location services and even iPhone accelerometer tool. He added that since the average user spends a half-hour each day interacting with apps, there is a tremendous opportunity for app advertisers to “deliver interaction” and also “emotion.”

Thanks to iAd, we can expect to see far more ad-supported applications across Apple’s devices now that Apple’s providing its own ad platform for creating ads. Yet advertisers have been able to create application ads for about as long as there have been iPhone apps through networks such as AdMob, Medialets and VideoEgg. With 85 million iPhone apps and iPod Touches already sold, and 4 billion apps downloaded – all before the iPad debuted – there’s room for several competitors, and many popular apps have little to no advertising to date.

iAd will likely compel all networks, agencies, marketers, and developers to provide richer experiences and better data. Meanwhile, with Apple doubling down on support of HTML 5 for creating the ads, it will create more fragmentation in the short-term but could lead to broader adoption on Apple’s standards – potentially not just for Apple’s devices but for mobile applications running on other mobile operating systems.

Read more insights from 360i over at Ad Age.

Report: Search, Display and Video Boost Online Ad Revenues

New data from the Interactive Advertising Bureau (IAB) and PriceWaterhouseCoopers indicates that online advertising has surged back after falling during the economic recession in 2009. U.S. online ad revenue increased 2.6 percent YoY in Q409 to $6.3 billion. Worldwide, online ad revenue jumped 10.2 percent YoY.

Search and Display revenues grew YoY, up 1 percent and 4 percent, respectively. Video ads were a large driver in display as growth – revenue for this sector hit $1 billion in 2009 and comprised 4 percent of total display revenue.

Writes Search Engine Journal, this new data underscores the “significant share shift taking place from traditional media from digital.” From 2005 to 2009, the Internet’s share of combined ad revenue grew from 8 to 17 percent.

iPad Mania Sweeps the Nation

Apple released its much-anticipated iPad tablet on April 3. In addition to garnering tremendous buzz online and off – the iPad has been a late night TV darling and was even featured in last week’s episode of Modern Family – Steve Jobs said (via Mashable) that sales haven’t been too shabby either. This week, 450,000 iPads flew off the shelves, with 300,000 sold on the first day.

Other stats:

  • 600,000 iBooks have been downloaded since launch
  • 1 million+ apps were downloaded to iPads on April 3 (3.5 million to date)
  • There are now 3,500 iPad-specific apps available for download

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In addition to garnering tremendous cultural interest, the iPad is also primed to present ripe opportunities for marketers. It remains to be seen if the tablet will be a game-changer in the mobile space, but Thursday’s unveiling of its iAd platform indicates that brands will be able to engage consumers in new and different ways via the iPad – especially if it drastically changes the way people consumer media.