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iAds Are a Game Changer

The single point of purchase is excellent concept but i dont think that’s iAds, selling physical goods through apple is tough cookie to crack, convenient yes but i could buy your tickets free if i had jailbroken phone. at 2010-04-10 00:01:18

kyussmondo said: Apple’s biggest upper hand over Google here even if Google do make it as slick and elegant is the amount of people using iPhone and iPod Touch devices. 85 million devices. That is huge. If you are an advertisers, then you go where the numbers are. Not only that, on the whole, iPhone users are a demographic that is more likely to spend money. Take the Facebook iPhone app. It is probably the most used app on the iPhone, imagine the amount of money Facebook would get from an advertiser wanting to advertise in Facebook. Facebook could then put that money back into updating the app more frequently and providing more features.

Not only that, the iPhone is still out of reach for a lot of people. If Apple were to lower the price of the iPhone which I think they will do with the next generation then people on lower incomes can afford iPhones who can get free ad supported apps so Apple gets the iPhone in the hands of yet more people which makes the iPhone even more attractive to advertisers.

Apple is so far ahead right now. The others are just playing catch up. What’s the betting that just as the Nexus One has nearly caught up with the iPhone the new iPhone will come out and probably make the everything else obsolete. at 2010-04-13 08:27:16

VK said: @Adam: “The problem with your examples is that those are not in fact ads for parking meters or for the movie tickets. Ads serve to increase business. If you are already at the theater it is not increasing business to help you buy the ticket. “

If I see a big line in a movie theatre and the the movie is about to start, I won’t stand in line to purchase a ticket (that happened to me when I went to see Avatar). If I could do that on my iPhone w/o a hassle, I would.

If I don’t have coins/cash/CC on me to pay at a given parking lot machine, I would turn away and drive around searching for a free parking (happens to me all the time).

So, those hypothetical ads would in fact increase business since w/o them my business would go to someone else. at 2010-04-11 16:18:15

(Derek)[] said: Are my eyes deceiving me? Did VK just agree with me? !!! ;) at 2010-04-11 16:37:14

VK said: What prediction? That they may be selling stuff other that books/music/etc.? Until they integrate that with their ad platform AND allow developers to sell things instantly through their apps, there’s nothing spectacular about that. Just like the article said, “but it’s kind of been done before”. I get my boarding pass from sent to my iPhone and then I present it at the gate to be scanned. Old. at 2010-04-16 20:25:44

(Derek)[] said: As for clients who prefer to drive to their own purchase systems - they’ll always be able to do so… but when customers have the choice between filling out forms, or not, they usually choose not. I think this will translate to higher sales of the same product when using iAds versus another solution.

Remember, one of the things that propelled Amazon to become the top book seller is their 1-click payment system. Pirates don’t pirate because they’re cheap; they often pirate because it’s easier than picking up a legit copy. We don’t eat fast food because it’s healthier for us; we eat it because it’s so convenient.

Don’t underestimate the power of convenience. at 2010-04-09 22:02:24

dstojanovic said: Agreed! It is a game-changer!! And, so easy to implement! Thanks d. at 2010-04-09 19:18:16

(Steven Green)[] said: Derek - excellent post. Great insights. at 2010-04-09 19:24:23

Ian said: Do we know that advertisers can charge for physical things that get delivered to your house? For sure, you can buy digital stuff like apps, but I’m not sure about physical things.

Even digital things is a big deal though. at 2010-04-09 19:37:30

(Jenn)[] said: Can purchase ANYTHING from iAd with one click? Is Apple stating this? What if I am not selling apps, but want to sell product (a laptop, a book, a car). Would these things need to be sold in the Apple Store? Many of my clients would prefer to drive to their own purchase systems, rather than have to deal with creating a net one with Apple. Thoughts? at 2010-04-09 20:54:34

Ian said: You’re right. There is certainly potential to turn iTunes into a whole money ecosystem. at 2010-04-09 20:46:08

(Zye)[] said: Great post. Very similar to the AdWords model. Apple is leaps and bounds into the future it just boggles my mind. All of their recent moves, inventions and the way they’re creating all of these content portals is going to just crush the competition.

Exciting. Great perspective on the iAds. at 2010-04-09 21:03:15

(Derek)[] said: That’s just it though, Adam. iAds is the first step toward something more than ads. Google already has ads that appear on maps. It’s a piece of text that you can click for more text, or a coupon, or whatever. Big deal.

I’m talking about something different, which works on the same principle as iAds, which are essentially “Push Applications”. There’s no reason these apps need to be anything like what we currently think of as “ads”. The whole purpose of an ad is to sell something. If you can sell directly without beating around the bush, or referring the user somewhere else, there’s every reason to do so!

Pushing these apps to people who are nearby will definitely increase business. The examples I gave were simple, but it could be more complex. Picture walking into a mall; an ad for the mall appears. You click on it, and a list of available push-apps appears. Each one details various specials-of-the-day. They increase sales by helping you filter out which stores to visit, and which to avoid. I was already in the mall, but I wasn’t already in the electronics store. It has now increased their sales.

Yes, iAds ARE currently what they say… I just think it could evolve into much more. Amazon started out as a place to buy books. They realized their warehouse & purchasing infrastructure could be leveraged to sell electronics, shoes, clothes, and more. They’re doing very well at it. They later realized that their virtual infrastructure could be leveraged to host websites (EC2) and media (S3), and they made their warehouses available to other businesses as a 3rd party fulfillment house. In short, everything Amazon does now started out as something else, and it’s helping their bottom line immensely. I’m just guessing as to how iAds may evolve. at 2010-04-10 14:02:08

Amit said: Interesting discussion and valuable inputs, thoughts shared by each and everyone! Very keen to understand the biz model on which iads works. Can someone share some info on that.

Cheers at 2010-07-02 13:01:46

Adam said: The problem with your examples is that those are not in fact ads for parking meters or for the movie tickets. Ads serve to increase business. If you are already at the theater it is not increasing business to help you buy the ticket. However, if some theaters offered the service and others didn’t I suppose it could become a differentiator that would make some people want to go to that theater rather than another where the buying experience isn’t as streamlined. However, that is a stretch as nothing has been proven. iAd is what it says it is - ADS…not purchasing apps. With that said, your ideas are intriguing and seem feasible. But again, that is not what iAd is necessarily solely intended to do although that is a PIECE of what it likely will be able to do. at 2010-04-10 07:04:39

Zolek78 said: actually, like Nikola said, it would be a problem with security. And that, would be something Apple might want to put themselves out to protect. I guess if Apple processes with this all-in-one-click store, they might have to throw out more security measurement.

And Derek, I agreed with you, I live in Vietnam and I pirate most of my apps, musics and films. However, I used a renting service once where you can just go online and choose the DVDs you want to rent and they deliver them to your house. I’m happy to pay for services like that.

On the other hand, how would apple and service providers globalise this? (Except for purchasing tickets which I really love cuz I don’t want to wait in line any longer). What if I want my new Macbook Pro delivered to my house if I live in the middle of the forest (which I really am). And oh, what about the infrastructure? Would it crash if thousands or even millions of people buying tickets at once? (I heard that AT&T’s service is turning bad) at 2010-04-10 13:55:59

(Derek Martin)[] said: Odd that we’d find evidence of my prediction being true just 1 week after I’d made it: Apple patent for selling concert tickets through iTunes - at 2010-04-16 12:36:57

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