“We feel pretty strongly that this is the way to capitalize on where the mobile Web is heading,” said Chad Jacoby, a senior manager of Nissan’s media operations. “What iAd promises is the most progressive thing I’ve seen to date” in digital advertising.
Advertisers and developers alike are very happy with Apple’s iAd platform. Developers like that they get paid a lot more than they would through other networks and advertisers like that users are much more likely to interact with the advertisements. Applications running iAds are seeing CPM rates as high as $25.
Dictionary.com said on Wednesday that the amount it could charge for its ad space had increased 177% since it enabled iAds in its iPhone app, and CBS Mobile Senior Vice President Rob Gelick said the company’s six apps — including apps for CBS Sports, CNET, and GameSpot, were seeing up to $25 CPMs (the cost advertisers pay for an add to appear a thousand times.)
On the other end of the scale, advertisers are reporting a much greater user engagement. Users spend more time with the iAds than with ordinary banners, and they are much more likely to “click” them. It can be expected that people would spend more time with the ads, seeing as the whole point of the platform is to provide information and entertainment without leaving the confines of the app. Ordinary display ads whisk the user away as soon as they click.
Nissan, which created a multilayer interactive ad for its electric LEAF car, said customers spent an average of 90 seconds with the ad — 10 times longer than interaction times for comparable online ads. Moreover, people chose to “tap” on the Leaf iAd five times more frequently than they clicked on regular online display ads for the Leaf.
If you haven’t seen an iAd yet, be sure to see this YouTube video of the Nissan ad. It shows-off the benefits of the platform (from the perspective of end users) pretty well.
I have high hopes for the iAd network, both as a blogger interested in seeing the advertising industry shaken-up and as someone getting started with iPhone application development.