It has often been said that the future of media is mobile and the future of advertising will follow the media. However, the gestation period for the mobile web has been a slow and often painful experience. Now that it has been born with a smart phone in one hand and an iPad in the other, what kind of baby will it be?
Many media watchers agree that most people will consume the majority of their media through mobile handsets (and/or tablets) in the near future. Apple and Google certainly agree that this will be the case.
Google chief Eric Schmidt says the search giant is now taking a ‘mobile first’ approach to all aspects of its business.
Apple on the other hand is already firmly in the mobile present, and is in prime position to earn billions more as we move further and faster into the mobile web. The iPad is selling over 200,000 units a week and the iPhone has led the smart phone revolution. Hundreds of millions of people now use smart phones to do everything from paying bills to shopping and news gathering. ‘There just happens to be a ‘phone app’ on smart phones’, as someone rightly put it.
Apple is now on the verge of its next big leap into the endless possibilities of the mobile web. In September, users of apps for iPhones and iPads will see the first wave of iAds – advertisements that run inside apps.
Apple boss Steve Jobs has said iAds would bring in the revenue that would allow developers to continue producing “free and low-cost apps to delight users”. Apple has already sold millions of dollars worth of iAds to the likes of Unilever and Disney.
Apple has other assets that may appeal to marketers, keen to see how iAds may work. For years the company has been analysing the purchasing history of its 150 million plus iTunes account holders worldwide. Now with the iPhone 4 it is also able to collect anonymous, real-time location data on its users. Apple, therefore, will not require the assistance of advertising media agencies. It already is one.
Apple says it will pass on to app developers 60% of the revenue generated by iAds. 40% is a nice commission by anyone’s standards. Currently 15% commission goes to Irish media agencies for bringing in advertising for publishers.
If iAds are to succeed, Apple will need a steady stream of content (i.e. apps) that engage people and attract advertisers. The problem for traditional media owners and publishers is that the mobile web is misunderstood and often despised. However, it’s obvious that apps (either web or native) are leading the next phase of the media’s evolution.

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