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iPhone OS 4 Event Review : Stats, Features and iAds

Apple, who are notorious for their big media events, made their official announcement of the iPhone/iPod Touch OS 4.0 features today. There are loads of new features to go through, but I will do my best highlighting the most important ones here.

Firstly some statistics:

  • 300,000 iPad sold on first day of sales. 450,000 iPads sold as of today.
  • iBooks: Users downloaded 250,000 iBooks in the first 24 hours. Users have now downloaded over 600,000.
  • 1 million iPad apps downloaded in the first 24 hours. As of today they’ve downloaded over 3.5 million
  • Users have downloaded over 4 billion apps through iTunes
  • 185,000 apps in the App Store now
  • Over 3,500 iPad apps in the App Store
  • iPhone has 64% mobile browser usage. Everything else combined is just half the iPhone.
  • Over 50 million iPhones have been sold.
  • If you add iPod touches, over 85 million iPhones and iPod touches

Now for OS 4.0

  • Developers can now access calendar, photo library, still and video camera data, quick look, SMS inside their apps.
    • This is great news as event modules can now add events into your actual calendar.
    • Articles can now be shared via SMS within the application without needing to leave the app
  • Automated testing tool that Apple uses internally to decided whether an app will be accepted or rejected is now publicly available.
    • This means that the app approval process is much more open and it will speed up the overall approval process
  • A few new features: Create playlists, 5x digital zoom in camera, Bluetooth keyboards, spell check, gift apps, Tap to focus video, Places in Photos, Home screen wallpaper, file & delete mail search results, web search from sugestions,Larger fonts for Mail, SMS & Alerts, Rotate photos, Sync IMAP notes, iPod out, Wake on wireless, Folders.
  • Multitasking is here! Jobs likens it to cut, copy and paste. “Not the first, but the best.”
  • Apps keep track of where you were and can start right back up again.
  • iBookstore on iPhone as per our predictions in this blog post
  • Better data protection. Encrypt all your e-mail, including attachments with PIN codes.
  • Mobile device management. Letting IT managers to deploy iPhones and manage them remotely.
  • Wireless app distribution. Companies can push out custom apps over the air instead of relying on an iTunes sync.
    • This is great for corporate apps as they no longer have to be distributed through iTunes

There is much more, but this is all they had time to highlight

iAds

iAd’s is Apple’s new advertising network. They will be managing all the inventory and from the sounds of it they will be taking 40%. All ad units are built in HTML5 and get served up in the application without having to go to an external site. Spreed is doing something very similar, but NO development skills are necessary.

  • Jobs says Apple wants to help developers make money off their creations, but says that “most of this mobile advertising really sucks, and we thought we might be able to make some contributions.”
  • Jobs says ads are easy on the desktop b/c of search. But people are spending all their time within apps. “This is where the opportunity to deliver advertising is,”

  • Jobs: Average user is spending 30 minutes a day using apps. That’s 10 ads per device each day.
  • We want to get 1 billion ad impressions per day by the end of the year.
  • Jobs: deliver “interaction” and “emotion”Something that’s in the middle of where Web ads are, and ads on your TV.

  • Jobs said it was annoying for people to click on an in-app ad b/c it would take them out of whatever they were doing.
  • Devs can add iAd in their apps for a 60% split of the revenues. All the sales and inventory are handled by Apple.
  • Ads have access to much of the same APIs as apps, like location and some level of accelerometer access
  • Jobs demoed a Toy Story and Nike ad
    • All the animations are interactive, and crazy smooth.
    • It’s not so much about the content of the app, but the interactivity
    • He’s flipping through the app: it’s offering up the history of nike ads, allowing you to flip through the years to see all the shoes throughout history
    • He pulls up the app with the Nike ad. It puls up an Air Jordan 2010 clip

So the run down on iAd’s is that it is great for developers in that it will be very easy to monetize apps. However, this is not a great solution for publishers and media companies. Apple will be taking 40% of all ad revenue and they are administering the inventory (you cannot retain your ad sales teams). In addition I am skeptical as to how deep their ability to target advertising will be. They have one piece of the puzzle and that is strong creative advertising, but they do not address targeting. Because they do not parse, control or index the content and because they do not understand user behavior, it will be hard to do deep targeting which is one of the main promises of mobile advertising.

Julie Ask of Forrester Research backs up my point about iAds not being for big publishers in her blog post on OS 4.0 with these two points

  1. We didn’t hear a lot about targeting – making use of past purchase behavior, day-to-day use of applications, etc. We did hear about location. Knowing that I have downloaded and am using the latest Audi application or browsing automotive sites on my iPhone might indicated that I am in the market for a car – that would be valuable information to automotive OEM’s. Knowing that I buy alternative rock music or that I read mysteries adds other dimensions. Location – given the structure of how they sell ads – this will more likely be purchased by large, national companies with stores throughout the country. Location (from the consumer’s perspective) will be more interesting when it helps me find local mom and pop stores that better match my interests.
  2. We didn’t hear much on analytics for the advertisers. This will be interesting to watch as the more effective Apple can be in demonstrating ROI – bought movie tickets, purchased a Nike shirt, bought the movie Toy Story – the more advertisers will spend. They’ll spend on branding now, but I think they’ll spend more if they can drive sales.

What is good though is that it will super charge the agencies to begin selling ads as they can utilize their existing skills sets to build strong creatives. Jobs just did to the mobile ad industry what he did to the mobile industry in general 2 years ago.

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Useful Info for Getting Retailers to Advertise on Your Mobile App

Are your retail advertising partners not sure whether your mobile property is the right place for them to advertise? Do you keep hearing questions from them about whether people actual make purchases through their mobile phones? Here are some useful articles to help answer their questions. People are indeed doing product research and purchasing items on their mobile phones. We know from our earlier post that retailers are beginning to gain interest in mobile advertising, but these articles and statistics should help push them across the chasm. I hope this help and please let us know if there is anything we can do to help attract these advertisers for you.

1.) From an interview with Tracy Benson in March 3rd Mobile Marketer

Best Buy claims that its mobile traffic is increasing and actual conversion via mobile devices is strengthening.  While 3 percent of Best Buy’s online traffic is coming from mobile, the conversion rate is 25 percent higher on mobile than on its wired Web site.

Many customers are using its mobile platforms for research, around 30 percent, with 18 percent checking inventory using their handset.  Twenty-eight percent of consumers visiting the mobile platform are using it to make a purchase, and in-store pickup is a key value proposition.

Tracy Benson, senior director of interactive marketing and emerging media at Best Buy, Minneapolis, MN. “We’re one of the largest sellers of smartphones, so we have the benefit of seeing who’s buying the phone, which helps us understand how they’re using it and the adoption rates.

2.) From the Mickey Khan post on ETail West found in March 1st Mobile Marketer

Senior executives from REI, Wet Seal, Yesmail, Netbiscuits and moderator Marci Troutman of Siteminis suggested that retailers focus on five factors when designing a mobile site or application: a great search function, such as the one seen on Amazon’s mobile destinations; easy navigation that is drop-down, simple and intuitive; imagery that allows consumers to zoom in and out – a picture speaks a thousand words; a store location function that drives local traffic; and low-friction transacting capability – get the customer registered with contact and credit card details on the wired Web and then use the same email and password on mobile.

3.) Mobile Shopping in US Will Grow to $2.4 Billion this year. Found in February 17th Mobile Marketer

In the United States, mobile shopping rose from $396 million in 2008 to $1.2 billion in 2009, and ABI Research projects 100 percent growth this year to reach $2.4 billion in 2010.

4.) Smartphone Users Making Purchases Over The Phones. Found in January 4th Online Media Daily

Nearly four in 10 (37%) smartphone owners have bought something not mobile-related over their devices in the last six months, according to the third-quarter smartphone intelligence report from Web analytics firm Compete.


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