Apple launched iAds back in 2010, as an attempt to better monetize the ads served on iOS devices. Now, the company is apparently trying to rekindle the platform by planning to offer full-screen video iAds on iPhone and iPad.
Video ads are the holy grail of mobile advertisement. That is because text-only banners are rarely clicked by mobile users and they don’t look great on the screen. Video ads, on the other hand, can make use of the resolution of a device and look stunning if well-made. That is precisely the angle that Apple is trying to sell to the advertisers.
There are hundreds of millions of iOS users, including both iPhone and iPad users. If Apple decides that it will now run video ads through the apps, this means hundreds of millions of eyeballs for these ads. These ads will typically start during a transition on an app, for instance when a character you are playing fails and the game restarts but not before you get to see the ad.
Apple hasn’t revealed the possible price tag on this ads real estate, although reports have it that Apple will try to offer these ad units through its own ad exchange. It remains to be seen how successful this new attempt by Apple turns out to be. The company has struggled with the ads side of its huge ecosystem.
Although Apple is the most profitable vendor of smartphones and tablets and has a huge user base around the globe, it hasn’t exactly been able to squeeze a lot of money out of its ads business. Back in 2012 for instance, Apple scored $125 million from mobile ad revenue while Google received a whopping $243 million. The numbers have changed since but the dynamics are more or less the same. Apple needs a fresh strategy to cash in on its iOS user base through better ads. And the imminent launch of full-screen video iAds may be a step towards that.
Courtesy: Ad Age