Apple’s foray into mobile marketing is poised to exert a profound influence on the advertising budgets of some of the world’s largest companies. It’s a scenario that portrays Apple as the catalyst for major advertising budgets finally allotting greater funds to mobile marketing campaigns.
Last year, iconic brands like Jaguar and Land Rover, for example, cumulatively spent $1.6 million on mobile marketing efforts. Apple, through its new iAd program, could easily engender a $1 million minimum annual spend for advertisers through its robust mobile advertising platform.
As it stands, Apple will charge advertisers one penny for every view of a banner ad by a consumer. Should the user click the banner, Apple will then charge $2. Consequently, Apple’s high expectations for mobile marketing’s potential on its hottest mobile devices – like the iPad – could result in a massive influx of advertising dollars into the mobile marketing industry.
The arrival of Apple’s mobile-device advertising capability has certainly generated mobile marketing sticker shock for many advertisers and their corresponding budgets. Ad executives, for example, who recently spoke to the Wall Street Journal admitted to paying between $100,000 and $200,000 for comparable mobile marketing deals.
While the new playing field dictated by Apple in mobile marketing may not be as level as most advertisers have experienced until now, the reaction from Madison Avenue to Apple’s mobile marketing ambitions hasn’t been overtly negative. In fact, Jason Spero, vice president of AdMob North America tells the Wall Street Journal that “Apple’s entry into ad selling is going to boost competition and development in the space.”
While its evident that Apple is optimistic about what the iAd platform can do for advertising, advertisers are growing increasingly more aware of the staggering consumer reach Apple has through its most popular mobile devices. With many industry analysts predicting that better than 100 million iPhones, iPod Touches, and iPads may collectively be in use by the end of 2010, the high price of advertising with Apple may ultimately prove a small price to pay for the enormous, targeted reach advertisers gain from utilizing what could soon become the ultimate gateway to high-impact mobile marketing.