Apple is reshaping the mobile advertising market

Today Apple announced key features of the new Apple iPhone OS 4 which will come out in Summer 2010. During that presentation Steve Jobs announced that Apple is entering the mobile marketing business with iAd.

The average user spends over 30 minutes every day using apps on their phone. If we said we wanted to put an ad up every 3 minutes, that’s 10 ads per device per day. That would be 1 billion advertising opportunities per day.

Steve Jobs: “There are many free or reasonably priced apps… the developers are putting ads into apps, and we think most of this kind of advertising sucks!”. He added: “Search is not happening on phones; people are using apps. And this is where the opportunity is to deliver advertising is. You know the ads on the web — they’re eye catching and interactive, but they don’t deliver emotion. What we want to do with iAds is deliver interaction and emotion.

It’s about motion plus interactivity. The ads keep you in your app. Today when you click on a banner ad, it yanks you out of your app and throws you onto the advertisers web page. So people don’t click on the ads.

Because iAd is in the iPhone OS itself, we have figured out how to do interactive and video content without ever taking you out of the app. For developers to add this to their apps is really simple. They can do it in an afternoon. Apple is going to sell and host the ads, and we’re going to do a 60/40 split.”

60% of Advertising Revenues will be for the Developers. Apple will earn 40% of the mobile advertising market in the future.

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