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Streaming Ads Coming To iAd Program

October 16, 2010
Yesterday we mentioned a report that showed in-app purchases (not mobile advertising), are the leading source of revenue for networking and social gaming apps. Now, Apple is going to try to improve the appeal of mobile advertising. The Cupertino, California-based company “will be adding a video angle to its advertising offerings” according to NewTeeVee. The new product will deliver streaming ads on both the iPhone/iPod touch and iPad. Apple TV could also be part of the program. The ads will be offers through Apple’s iAd mobile advertising service. Mobile video advertising is not new. However, advertisers have long been committed to creating those ads in Adobe Flash. This isn’t available on Apple’s devices. According to NewTeeVee:
But Apple’s new ad product could solve that problem by giving publishers an easier way to monetize their videos. According to a source, the new in-stream ad product would work with both Quicktime video and HTML5-delivered video. As a result, publishers would be able to serve the same type of pre-roll, post-roll and mid-roll video ads as in their online Flash players, but they would be able to do so natively in apps and through mobile web pages that appear on iOS devices. The ad product would not only enable video publishers to serve their own ads against videos on the iPhone or iPad, but it would give Apple the ability to act as a video ad network for those that don’t wish to sell their own inventory. The in-stream ad system is also expected to have some targeting capabilities built-in, with mobile location data and anonymous user behavior data to help deliver targeted ads to consumers.
Apple’s iAd program is expected to account for 21 percent of the entire mobile advertising market by December. By adding streaming videos, Apple hopes to improve those numbers.

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