Apple will debut its iAd mobile advertising network on 1st July 2010 on iPhone and iPod touch devices running its iOS 4 software platform.
iAd will kick off with mobile ad campaigns from AT&T, Best Buy, Campbell Soup Company, Chanel, Citi, DirecTV, GEICO, GE, JCPenney, Liberty Mutual Group, Nissan, Sears, State Farm, Target, Turner Broadcasting System, Unilever and The Walt Disney Studios. Apple has iAd commitments for 2010 totaling over US$60 million, which represents almost 50 percent of the total forecasted US mobile ad spending for the second half of 2010, according to a report by JP Morgan “Nothing But Net—2010 Internet Investment Guide,” 3rd January 2010.
“iAd offers advertisers the emotion of TV with the interactivity of the web, and offers users a new way to explore ads without being hijacked out of their favorite apps,” said Steve Jobs, Apple’s CEO. “iAds will reach millions of iPhone and iPod touch users—a highly desirable demographic for advertisers—and provide developers a new way to earn money so they can continue developing free and low cost applications.”
iAd, which is built into iOS 4, allows users to stay within their app while engaging with the ad, even while watching a video, playing a game or using in-ad purchase to download an app or buy iTunes content.
Developers who join the iAd Network can easily incorporate a variety of advertising formats into their apps. Apple will sell and serve the ads, and developers will receive an industry-standard 60 percent of the iAd Network revenue, which is paid via iTunes Connect.
iAds require iOS 4, which will be a free software update via iTunes 9.2 or later for iPhone and iPod touch customers. iOS 4 will work with iPhone 3G, iPhone 3GS, iPhone 4, and second and third generation iPod touch (late 2009 models with 32GB or 64GB).