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 Today’s 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 company’s product. And

with the iAd, we divide your company’s 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 edge-

to-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. It’s 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 don’t 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 they’ve learned

so far. And it’s all contained in a beautiful enclosure a

mere 9.3 millimeters thin, making iPhone 4 the world’s

thinnest Smartphone.

B. iPod

• Touch

Pioneering technology

built into iPod touch is

how you’re able to flick,

tap, and pinch. It’s what

makes a racing game feel

so real. It’s why you’re

able to see a friend crack

up at your jokes from

across the globe. And it’s

the reason iPod touch is

the most incredible iPod

you’ll 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

it’s 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

You’ll 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 what’s new,

what’s 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, you’ll 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 month’s 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, you’ll 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. What’s a

podcast? Much like a radio or TV show, it’s a video or audio series about anything

and everything. You’ll 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 you’re

bound to find a podcast you’ll like.

You can listen, then click to

subscribe. Podcasts download to

your iTunes library automatically, so

you’ll never miss an episode. You

can listen to them on your computer,

iPod, iPhone, iPad, or Apple TV.

And best of all, they’re free.

e. Audio books

The iTunes Store includes a well-stocked

library of the world’s best-selling

audiobooks. You’ll 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 couldn’t 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. Today’s 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 don’t 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 Weber’s 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 games on

Application Store 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 Click

$ 10.000 5.000

$ 100.000 50.000

$ 1.000.000 500.000

$ 10.000.000 5.000.000

iAd count your advertising by user click, if user don’t 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 world’s 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

doesn’t 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 don’t 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 Client’s 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 Stewart’s

help, that listening to a book can be even better than reading it.

Campbell’s Soup

Illustrating all of the high quality ingredients found in Campbell’s 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 don’t 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.