Saturday, March 27, 2010

Apple Puts Down Roots in Media Advertising

So Apple is going to re-invent the advertising media platform.

Well I for one, am not at all surprised.

When music was fat, sluggish and floundering, Apple pulled the market right out from under music media distribution.

While mobile handset manufacturers were taking marching orders from carriers, Apple took orders from no one, locking up 20% of US hand-held market share on a single carrier in just two years. Holy!

Now it is media advertising's turn and boy-oh-boy is that market vulnerable to singular tech. Multichannel disparity leaves a gaping hole for Apple to fill and fill it they will.

Google may have online advertising in the bag but that's only about 10% of total ad spending. Broadcast, print magazine, OOH, DM/DR, display, event and other categories still make up close to 90% of media spending and that's still anybody's game. Anybody that is, who realizes that the mobile phone is the one device that lets it's owner control and integrate media for their own purposes based on proximity, location and context.

Apple beat Google out of the gate long before iPhone and frankly, Google has a lot of catching up to do in terms of brand extension, customer loyalty and market penetration.

I hope this much is finally clear to the advertising industry. The race to own media advertising will be run on the mobile hand-held. No great prediction here, Apple will emerge a dominant advertising media player.

So what's next? Retail banking is a short hop from mobile commerce, ripe for change and the customer contact lynch pin.

What's "everywhere you want to be," what's "priceless," what don't you leave home without? The iPhone, that's what.

"One of popular scenarios is that Apple will offer a hypertargeting capability that would enable advertisers to target ads to consumers based on their geographic proximity, paving the way for a new generation of location-based advertising. But some observers believe that could be trouble for Apple, because Google recently won the patent for systems that serve ads dynamically based on a user's location, and given the current relationship between the two digital behemoths, such a move by Apple would likely invite litigation from Google.

Another potentially telling patent move is one that Apple registered for in 2008 that potentially could control ads served on virtually any screen connected to an operating system that would turn the content or application off if the user isn't paying attention to the ads."

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