v-Fluence Blog

Apple’s mobile advertising service has a few bruises, according to launch partners

A modern version of the old adage that “there’s no such thing as a free lunch” might be “there’s no such thing as a free app.” While approximately 28 percent of the iTunes App Store’s 225,000+ apps are billed as free, many feature prominent advertisements supplied by Google’s AdMob mobile service. Projected 2010 revenues for mobile advertising is nearly $600 million, with $60 million stemming from Apple's iAd service, and more than 5 billion apps have been downloaded this past year.

Despite the substantial revenues, complaints levied in The Wall Street Journal infer iAds might need some additional polish to realize its potential. Currently, ad development is taking longer than the industry standard, approximately “eight to 10 weeks.” Consequently, launch partner Chanel has balked at an iAd campaign and this delay may persuade other companies to decline to take part in iAds in the future.

It’s not all doom and gloom, though. Nissan has raved about “exceptional results” for an interactive ad designed around its electric LEAF automobile, and Unilever will debut a second iAd for Klondike bars after a successful ad for Dove shower products.

The challenges associated with iAds highlight the need for companies to create a comprehensive marketing strategy. As v-Fluence’s CEO Jay Byrne stated in his 2009 blog entry, “It's not yet time to abandon your social media strategies for an all-mobile focus…a layered approach building on a foundation that includes a strategic, integrated and best practice-based Web 1.0 presence that extends effectively into 2.0 spaces and the mobile arena will most likely win over flashy forays in the end.”

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