Apple Mobile Advertising

Final-term Assignment

By: Eka Darmadi

Faculty of Business and Economics University of Surabaya 2010

iAd
Next Level of Mobile Advertising By: Apple.Inc

Executive Summary
This proposal is to give the information about our new advertising method

The iAd occupy more than 48% of us market in 2H 2010, which valued as $60 Million of $250 Million from global market. The Cost of Todays Advertising is too expensive

iAd offers Advertising that not too costly but more effective than conventional advertising we can meet today. The company usually spend around $100.000 / Year just for advertising, and this will be their fixed cost, and keep growing along the advertising will be more costly than today. But the problem is your advertising now is effective or just spends your money without good feedback from your customer.

iAd Mobile Advertising We want to improve everything about advertising, and as an apple company, we want to joint this opportunity, because our market research tell us the mobile advertising will grow fast along new technology and innovation there. Good advertising contains interaction and give the emotion to the audience. So, they can feel more interested and buy your companys product. And with the iAd, we divide your companys advertising into 20 different categories from: Book, Business, Education, Entertainment, Finance, Game, Healthcare, Lifestyle, Medical, Music, Navigation, News, Photography, Productivity, Reference, Social Networking, Sports, utilities, Wheatear. The Advertising which appropriate with market segment

iAd has 20 different categories. When you want to put your advertising, we will categorize based on 20 different categories. So, your advertising can be read by right person. For the example is the advertising about movie, Toy Story 3. We will put this advertising on the category of entertainment. So, people who love the movie, will see this advertising ( Toy Story 3 ) and they will be interested with this advertising, better than other commercial advertising like Tv Ads. Usually the customer will be less interested to watch the advertising on Tv.

I. HISTORY OF APPLE Apple Inc. was established in 1976 in Cupertino, California and incorporated in January 3, 1977. For 3 years, The first name of the company was Apple Computer, Inc. Ans then on January 9, 2007, the word Computer was removed to reflect the company's ongoing expansion into the consumer electronics market in addition to its traditional focus on personal computers. Apple had 46,600 full time employees and 2,800 temporary full time employees worldwide and had worldwide annual sales of $65.23 billion on September 25, 2010. Moving in Mobile Device Company, and focusing at the Mobile Phone, Tablet PC, and software maker and distribution. II. INTRODUCTION TO PRODUCT OF APPLE
MAC :

A. iMAC
iMac has the size from the first 15-inch . 21.5-inch or 27-inch display with edgeto-edge glass covers nearly the entire front of the enclosure. You can watch Movies, TV shows, websites, photos, and everything stunningly on the 16:9 widescreen iMac display.

B. MacBook
MacBook has size of 1.08 inches thin and only 4.7 pounds, the sleek MacBook cuts a slim profile on any desk (or in any backpack or briefcase). MacBook has a seamless. Its made of rugged polycarbonate that withstands the rough and tumble of everyday life at school, at work, or while traveling. And

since the bottom of the MacBook is covered in a nonslip material, it always stays right where you put it whether it's on a desk, table, or airplane tray.

C. Mac Pro
You dont need to turn the system on its side or struggle to reach into awkward spaces to make changes. You Just need to remove the side panel for instant access to everything. The most powerfull mac ever with 12 core processor inside.

Mobile Device

A. iPhone
Started with three years of experience designing and building the phones that redefined what a phone can do. iPhone 4 is the result of everything theyve learned so far. And its all contained in a beautiful enclosure a mere 9.3 millimeters thin, making iPhone 4 the worlds thinnest Smartphone.

B. iPod Touch
Pioneering technology built into iPod touch is how youre able to flick, tap, and pinch. Its what makes a racing game feel so real. Its why youre able to see a friend crack up at your jokes from across the globe. And its the reason iPod touch is the most incredible iPod youll ever own.

Nano
IPod nano has been completely redesigned with Multi-Touch the same technology that makes iPhone, iPad, and iPod touch so amazing. Now its half the size and even easier to play. And everything you want to hear is just a tap or swipe away.

1.

iTunes Store
a. Music
Youll find millions of high-quality, DRM-free songs on the iTunes Store all for just 69, 99, or $1.29. Browse around. Have a listen. See whats new, whats hot, and what other fans are listening to. iTunes recommends music based on what you already like, so you can always find something new to enjoy. When you download select albums, youll experience iTunes LP a beautifully designed, interactive world right in your iTunes library. Many are created by the artists. While you listen to your favorite songs on your Mac or PC, dive into the lyrics and liner notes, view photos, watch videos, and enjoy other bonus materials.

b. TV Shows
And you thought you loved TV before. iTunes brings you your favorite TV shows, uninterrupted, whenever you want, however you want. Even in HD. You can rent or own the latest episode as early as one day after it airs or rent or purchase past episodes you missed. Choose from thousands of commercial-free episodes. For shows that air daily, a Multi-Pass lets you enjoy a months worth of episodes. Just download and watch on your computer, iPhone, iPad, iPod touch, or television via Apple TV.

c. Movies
From comedy to drama, romance to classic, independent to thriller

movies, movies, and more movies await you on the iTunes Store. Browse thousands of releases from every major Hollywood studio. Buy or rent them in standard or high definition and watch on your computer, iPhone, iPad, iPod touch, or television via Apple TV. When you buy select movies, youll discover a world of special features called iTunes Extras including interviews, trailers, and photos you can watch in iTunes on your Mac or PC.

d. Podcast
The iTunes Store is your source for hundreds of thousands of podcasts. Whats a podcast? Much like a radio or TV show, its a video or audio series about anything and everything. Youll find podcasts from independent creators, as well as big names such as HBO, NPR, ESPN, The Onion, CBS Sports, and The New York Times. Check out the categories youre bound to find a podcast youll like. You can listen, then click to

subscribe. Podcasts download to your iTunes library automatically, so youll never miss an episode. You can listen to them on your computer, iPod, iPhone, iPad, or Apple TV. And best of all, theyre free.

e. Audio books
The iTunes Store includes a well-stocked library of the worlds best-selling audiobooks. Youll find thousands of titles, and the list keeps growing. Browse biographies, mysteries, comedies,

classics, self-help books, and more. Download and listen on your computer, iPhone, iPod, or iPad. Audiobooks remember where you left off listening, so you can start one on your couch and continue it on your commute.

f. Applications
The App Store is the ultimate source for mobile apps 300,000 and counting in practically every category. Many are even free. Getting apps onto your iPhone couldnt be simpler. Just find the ones you want, then tap to download them.
US Mobile Display Advertising 2010

In the advertising industry overall, revenues generated by direct and brand advertising are roughly split 50/50. But in the online world, where direct advertising is represented mostly by search and email ads and brand advertising by graphical display ads, the split is closer to 70/30 in favor of direct ads.

In mobile advertising, both display and search are puny compared to text messaging ads. Total U.S. mobile advertising for 2009 is estimated at $2.6 billion, up 62 percent. But $2.3 billion of that was from text messaging. Only 178 million was mobile search, and $140 million was display (both up 80 percent last year). In 2010, mobile advertising is forecast to grow 45 percent to $3.8 billion, with the breakdown being $3.2 billion SMS advertising, $253 million mobile display, and $321 million mobile search.

One of the biggest reasons to be hopeful about the outlook for the continued growth of the Internet advertising industry is that when you look at the time U.S. consumers spend on the Internet versus the amount of ad dollars which go there, the proportions are out of whack. As recently as 2008, U.S. consumers spent 38 percent of their media consumption time on the Internet (29 percent if you exclude teens and young adults), but it attracted only 8 percent of advertising dollars. Whereas consumers spent 37 percent of their media consumption time on TV, which captured 32 percent of advertising dollars. If you believe that time is money, advertising dollars should continue to flow towards the Internet. iAds have 23% of US mobile advertising market. Values add $60 million in 8 weeks since we promoted the iAds. To help our developers earn money so they continue to create free and low-costs apps.

III. Todays Advertising

A. Web Advertising

Web Advertising is a promotion that uses the internet and World Wide Web to attract customers with expressing purpose of delivering marketing messages. As we know most of young and teenager always use the internet. This kind of advertising delivers interaction with user, but they dont give emotion

B. TV / Media Advertising
TV / Media Advertising is the advertising that uses words, speech, and pictures to communicate the promotional messages. (Emotion) can give us as a user passion to buy or try this product.

IV. Effective Advertising

The good advertising can deliver interaction and emotion with user. Television Advertising has a lot of emotion but no interactivity. iAd wants to be more interactive than the other advertising on the web and iAd wants to get the emotion from the video.

V. iAD

A. Introduction to iAd
iAd is a mobile advertising. iAd was created by Apple inc. in 2010. The iAd advertising platform gives Company or end-user to bring the new way of advertising, with the iAd the company can promote their product more effectively than other advertising media, because iAd can categorize their ads, with our current iPhone apps. Sale in our market today categorize as: work apps, cooking apps, and much other. example on entertainment apps. We can put Movie advertising. So your advertising will be more target market.

VI. iPhone Application

A. Work
You can find your perfect business partner whether you are managing projects, clients, or your time by iPhone. These are the examples of the applications : Linkedln, Salesforce Mobile, Bento, 1Password,

FedEx Mobile for iPhone, Cisco WebEx Meeting Center, and iTimeSheet.

B. Cooking
iPhone has many kitchen applications which contain of many recipes of food. The examples of the applications are Webers On the Grill, HarvestMark Food

Traceability, Ask The Butcher.

C. FINANCE
iPhone has many applications that can help you track and save your money. These are the examples of the applications : Bank of America Mobile Banking, Pageonce Personal Finance, PayPal,

American Express, BillTracker, Yahoo! Finance.

D. Gaming
You can entertain yourself by playing games on iPhone. You can buy those Application games Store on of

iPhone. The games are like Rock Band, Harry Potter: Spells, Angry Birds, Plants vs. Zombies.

E. Travelling
You can find maps,

language lessons, tour guide for your destination directly from your iPhone by the applications of travelling. These are the examples of the applications : Metro Paris Subway, Flight Track, Zagat To Go.

VII. How iAD works ? ?

You can see from the example of Toy Story 3 iAD beta test :

A. Put the banner on applications

The banner have been designed and submitted at apple, then when we approve the ads, its goanna be look like.

B. User tab / press the banner

So the window of ToyStory 3 will pop up and start to Loading the content, and the X button at the top, can be press if user want to leave the advertising.

C. The example of Main Menu iAD

User can click on the menu they like, this sample of Characters

D. The example of Inside iAD

Sample of Video and Mini Game.

Photo sample,

Map,

Shop.

VIII. Benefit of iAD

A. Advertising on iAD is more interactive than the other advertising from the other website and also advertising on iAD has an emotion from the video. iAD has fulfill the requirement of an effective advertising : delivering interaction and emotion by video & animation.

B. iAD has more than 1 billion applications and those applications has been purchased. There are more than 7 billion applications used by the users every day. For every 1 application, the users spend 30 minutes per day to use the application.

C. iAD has richer media content such as Image, Video, Mini Game, Map, Sound, Animation, In Ads Shopping.

Cost of iAd

Price $ 10.000 $ 100.000 $ 1.000.000 $ 10.000.000

Click 5.000 50.000 500.000 5.000.000

iAd count your advertising by user click, if user dont click or see your advertising, your credit click will not decrease, just when user view and watch your ad, your credit of click will be decrease. This plan is more effective than other commercial advertising, because we make sure your advertising at the right person. Also better feedback from your customer. better than other advertising method. All the cost above include the cost for making animation, video, and server space for support the iAd all over the world, and the market (Now) still at US market, and based on your country. Other country will cost at different price and agreement. For our current developer of iAd we gave them great deal with iAd, 60% revenue will deliver to our developer and the 40% is cost for maintenance the iAd so, the iAd can run well. This opportunity is open for all people who want to join us. Developer can create the application then create the advertising space inside the advertising. So when their advertising is sold they get 60% of revenue.

Tap into the Apple audience

iAd reaches millions of iPhone and iPod touch users around the world in their favorite apps. With the iAd Network, you get access to the Apple audience, the worlds most engaged, passionate and loyal consumer. This audience:

Has installed more than 7 billion applications Has activated over 160 million iTunes accounts Downloads 200 new apps every second worldwide Spends, on average, 30 minutes per day using apps Sets trends and shares with family and friends

Each ad is shown within the many thousands of apps in the network only to the audience you want to reach. Our highly-effective targeting uses unique interest and preference data that taps into passions relevant for your brand. Whether they are reading the news, playing a game or checking the local weather, your ad will make an impact.
Standard Targeting Options

Demographics Application preferences Music passions Movie, TV and audiobook genre interests Location Device (iPhone, iPod touch) Network (WiFi, 3G)
Every brand has a great story to tell.

iAd advertising combines the storytelling power of TV with the interactivity of digital for something entirely new. You can now create ads that captivate your audience wherever they are, within their favorite apps. With the iAd logo on each banner, the audience knows a great experience awaits them. They can tap with confidence knowing that entering an immersive ad doesnt have to mean leaving their app. Because iAd is built into iOS 4, the innovative mobile operating system that powers iPhone and iPod touch, you can incorporate a variety of rich user experiences in your ad. This allows users to:

Download an app or buy iTunes content from the iAd Save screen images to photo albums View in-line audio and video in a custom frame Save coupons, barcodes, recipes or branded wallpaper Find nearby stores and get in-depth information Share content via twitter without leaving the ad Gain understanding beyond impressions.

iAd campaign reporting goes far beyond the standard measurements of exposure and clicks. You get in-depth information throughout the course of your campaign, including average time spent, pages viewed and unique visitor metrics.

We continually optimize your iAd targeting so that your ad performs for your goals throughout your campaign. In addition, a complete wrap-up report provides key insights into user engagement, performance and best practices based on overall network results. By understanding user behavior, you can learn new things about your audience to hone your marketing strategy and further inspire them with your story.
Standard Metrics

Impressions Taps and tap-through-rate Unique visits Average time spent Views and views per visit Interactions (videos viewed, games played etc.) Conversions and downloads

How to apply iAd? 1. Register Pay the down payment & Agreement 2. Submit Advertising media Video & Image 3. Done We processing your ads.

Conclusion

Apple has success to built lot of new innovation, like Mac as apple computer, MacBook as apple portable computer, also ipod as portable media player. Apple market is all age, from student until enterprise user, means that apple has lot of connection. Apple develop iOS4, which operating system for iPhone & iPod Touch. They already sold more than 250.000.000 iPhone and iPod Touch all over the world since 2007. With more than 250.000 application for iPhone & iPod Touch, and more than 7.000.000.000.000 ( 7 Billion ) application sold. And user usually spends around 30 minutes every day for one application. So, we decide why we dont put advertising on the application? With more than 7 billion application sold until today. With the iAd, bring the advertising into iPhone & iPod Touch user, we categories into 20 different category, like business, social networking, news, entertainment, etc. and we will put your advertising in your right category so you can meet the right person who have potential to use / buy your company product. iAd offering you, more than usual advertising, with iAd you can put interaction and emotion in your advertising. Like web advertising they offering you interaction, and TV advertising will offer you emotion. But iAd offer you both interaction and emotion in your advertising. 3 simple step for apply the iAd ( Register, Submit Ads, Done ) with 3 simple step, we hope user can easy to join our advertising program. But for further information you can go to our website at apple.com and contact us by mail. Limitation for many advertising contain of dangerous code, porn, are not allowed to advertise at iAd. For now (2010) iAd just available at US only but at 2011, iAd will expand at Japan, Indonesia, Thailand, Malaysia, Singapore and more country on next year. Our client today : Nissan, Dove Men & Care, JC Penny, We Rule, Audible.com, and AT&T

Our Clients iAds: AT&T

Showing AT&T customers how affordable it is to add someone to an existing Smartphone Data Plan using interactive data visualization tools.

Audible.com

Introducing new users to the Audible.com brand and showing them, with Jon Stewarts help, that listening to a book can be even better than reading it.

Campbells Soup

Illustrating all of the high quality ingredients found in Campbells condensed soups, and offering recipes that show what soup can do to transform a meal.

Dove Men + Care

Positioning Dove Men+Care as a brand for men who are comfortable in their own skin by showcasing the journey top athletes take to achieve confidence and comfort.

JC Penny

Engaging teens to discover JCPenney as a destination for back-to-school must-have styles at compelling prices.

Nissan

Driving awareness and consideration for the new 100 percent electric car by offering an experience that is as intuitive, forward-thinking and exciting as the Nissan LEAF itself.

We Rule

Tapping an iAd for Developers banner brings the App Store experience right into the ad. Users can learn about an app and download it immediately without leaving their current application.

Until now, when we saw advertising on TV always like distribution for our favorite TV program, and mostly we dont like to see the advertising. But we as apple company want make a new design of advertising that user will love it, not hate it. Because iAd offer freedom for user to view the advertising if they like, and leave the advertising whenever they want.