Category Archives: Newspapers

Appvertainment from Jobs-Apple and the iAd

The announcement of iPhone OS4 changes the Smartphone  world – yet again.  As Steve Jobs described the 7 tent poles of the new iPhone/iTouch/Ipad OS, it was clear that the tent was not quite large enough for everyone. The center pole of this tent is clearly– iAds.

The raison-d’etre  for the much heralded multi-tasking feature is Appvertainment.  (e.g. iAds).    Do not be distracted by the fact that he introduced multi-tasking first and iAds last.  They are intimately linked.

Apple is pursuing their app centric  vs. search (Apple vs. Google) strategy for smartphones  through the introduction of their own OS integrated  ad serving technology.  Multi-tasking is the key component in this ad strategy to permit a user to return to an app after an ADHD moment is fulfilled by playing with a cool appvertainment.  Without multitasking you lose your application state/status and have to start over again.  Jobs is trying to change user behavior and reward users for clicking on an ad with an engaging experience, instead of punishing them by having them have to re-start their app.

Appvertainment targeting was not discussed. The social  and geolocation information that the host apps maintain on users will most likely be used for targeting purposes.  The Apple social game network API will no doubt  be used for providing this targeting information for game hosted appvertainments .    Apple is betting that App hosted ads will be valuable than Internet style search ads.

Jobs boosted that the Apple platforms would be capable of serving 1 billion app-ads per day by the summer of 2010.  Even if we cut that number in half and apply a modest $10/CPM ad rate – that represents daily gross appvertainment revenue of  $5M.  Apple’s vig on the ad revenue is 40%.  This is easily approaching a $1B+ annual revenue opportunity for Apple.

Click for full commercial

Another interesting aspect of this strategy is that Apple is clearly focusing on large brands and advertising agencies – in other words, the folks with the largest budgets.   This clearly makes sense.  The cost of an appvertainment production can easily be in excess of $250K+.  The inclusion of integrated and compelling video with engaging interactivity is not the domain of amateurs, but rather professional digital agencies.  The examples that Jobs demonstrated during his presentation (Nike, Disney and Target) are all major national brands with large budgets and big Madison Avenue agencies.

As I watched the presentation another thought came to mind –  “Is this legal?”  What would happen if Microsoft integrated a proprietary ad serving system in their OS and demanded 40% of the revenue of every ad served on a Windows machine?  This topic will clearly be discussed in the blogosphere and perhaps courtrooms in the future.

Did anyone hear a mention of sharing ad revenue with Mobile Carriers?

Another  “pole” of significance is the enhanced suite of enterprise features. Corporate CIOs have had a set of killer issues that prohibited the iPhone from significant corporate sanctioned and supported utilization.  Apple is trying to remove these roadblocks with OS4.  In addition to the enhanced  security and email capabilities is device management.  Device management includes the feature of permitting corporations to load their own private apps on the iPhone.    The execs at RIM should be concerned about their Blackberry franchise.

Apple would not be investing in enterprise features while maintaining an exclusive relationship with AT&T.  OS4 changes Apple from the Trojan Horse of a sexy consumer device on AT&T to a machine poised for world domination.

The competition between Google and their Android platform and Apple will only get fiercer.  Nokia is the only other global player who can play at this level.   Palm, RIM and even Microsoft will fight for the leftover niches.  It is a battle of the controlled and planed eco-system of Apple vs. the Open-Source world of Android.

The Apple tent has room for enterprise applications, has a new revenue source for app developers, and embraces big brands, ad agencies and publishers.  Adobe (no Flash support) and Google are outside the tent of OS4.  Microsoft got the biggest slight in this announcement as their mobile efforts were ignored as though not relevant.  And what about the mobile carriers?  Do they exist in the Apple world? Continue reading

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Filed under advertising, android, Apple, AT&T, Beezag, blackberry, facebook, Google, iPad, iphone, Ipod, iTunes, location based services, management, microsoft, mobile, mobile advertising, Mobile Application Stores, mobile commerce, mobile games, netbooks, new media, Newspapers, Open Network, opensource, pirates, smart phone, Smartphone, Social Media, social networking, Steve Jobs, Twitter, Web2.0, widgets, wireless

Give Me Liberty AND Give Me Death?

Give me Liberty and give me Death?

Give me Liberty and give me Death?

This past Sunday, as I enjoyed a bagel with a schmear, I caught up on the news of the week. I read the New York Times and the local Newark Star Ledger. It is no secret that the newspaper industry is in a real (not virtual) death spiral due to its continual loss of advertising revenue. The fact that some of these same papers have some of the most trafficked web and mobile sites has done little to stem this river of red ink from the nations presses.

The demise of the our nation’s traditional print media is all the more ironic since much of the thoughtful, original news reporting that the Internet so eagerly scoops up is created by the same companies that the Internet and digital media are destroying.

With this as our backdrop, I want to point out a significant problem with advertising, whether it’s printed in the Sunday Newspapers or published on the Web.

The problem is proper targeting. Getting your ad to the right audience, at the right time and in the right context.

Exhibit A:

page1bBelow are photos of the front page and page two of the Newark Star Ledger for Sunday April 26, 2009. The lead story is the ever-increasing Swine Flu epidemic that originated in Mexico. The page one story continues on page two with a large picture of Mexican Nuns wearing surgical masks. The second story on page two concerns the spread of the Mexican Swine Flu to New York.

The most prominent ad on this same page is………

Liberty Travel page2to Mexico.

Clearly, someone at the Star Ledger was going for context sensitive advertising and matched the words Mexico in the feature story to Mexican vacation travel. How effective do you think a Mexican travel ad is these days? How much damage was done to the Liberty Travel Agency by having its Mexican Travel advertisement associated with perhaps the worse Flu pandemic since 1918?

Whether this was a machine driven algorithm or a soon to be fired intern who determined the ad placement, an improperly targeted ad can be more than just a waste of valuable marketing dollars, it can actually injure a company’s reputation.

Exhibit B:
Since I did not want to unfairly single out the newspaper industry, I also searched the Internet with terms such as “Mexico Flu”, “Mexico Travel: and “New York Flu”

The first set of interesting results I got were on the website “How Stuff Works?”

The snapshots I show below are very interesting groupings for included Google AdWords advertisements. In both cases, a travel ad is intermingled with ads touting the flu breakout and flu prevention. How impactful will those travel ads be? While not quite as egregious as the Liberty Travel example, it is clear that the Google Adwords targeting algorithm does not exercise the important trait of common sense.

nyflumexflu

 

Exhibit C:
My next example comes from the New York Daily News website. Here we go again!daily
There are several stories highlighting the danger of traveling, especially by air. The Swine Flu epidemic is spreading worldwide and what are the major ads on this page?

Delta Airlines and worldwide travel.

Not only is this a waste of advertising budget, it is socially irresponsible.

In all three cases negative editorial content is supported by ads for companies, which are completely out of sync with that content. Touting travel in general, and especially travel to Mexico, in the midst of several stories demonstrating the severity of an epidemic in Mexico is ludicrous.

Exhibit D:
In case you thought I would not include the paper of “All the News that is fit to Print”, I also searched the New York Times website for articles on Mexico. The result of that search is shown below:

picture-11Once again we have travel ads to Mexico. I was actually wondering if there could be legal liability for promoting travel to a destination with a public health crisis and a deadly virus?

For advertising to be effective, and have a substantial ROI , AND not be destructive to a company’s image, the ad must be precisely targeted to the target audience.

This is true regardless of advertising medium.  Print, Web, Mobile – the same rules apply.

Advertise to your precise audience with a product they are presently interested in purchasing.

This is very simple. For the three cases I mentioned above, take out the travel ads and place ads for hand sanitizers, surgical masks and health services.

The key is getting the right ad to the right person, in the right context and at the right time. You do all of this and you have an Ad that should have a nice ROI.

If you don’t target your ad correctly who is the Swine?

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Filed under advertising, Content, Flu, Google, Mexico, mobile, mobile advertising, New York, Newspapers, Swine Flu, Travel