Wrth iPhone App Store sales reaching $1 million
per day in its first month, Apple CEO Steve
Jobs believes the market for IPhcne applications
could eventually reach $1 billion. This presents an
opportunity not oniy for app developers, but also
for advertisers looking for ways to get on board.
Mobile ad pioneer AdMcb Is one vendor that
has had advertisements on the iPhone since the
launch of the original version. According tc Jason
Spero, vice president of marketing for AdMcb,
the vendor currently is charging advertisers
arcund 30 to 35 cents per click - abcut $25 ÃÂ¡Phone app with ad
to $30 cost per thousand impressions. He's not convinced that a $1 billiona-
year opportunity is realistic for advertisers in the next year or so, but it won't
seem as farfetched as the desirable iPhone user base continues tc expand.
"As you see uptake of the device, you'll see the size of the buys grow,"
"Where an average buy right now might be $25,000 to
$50,000, you'll see an advertiser very willing to spend multiples of that to
reach this audience, That's what's really cool - as this device becomes
more mass market, the advertisers have shown an uncapped willingness to
spend to reach this audience."
Right now, the iPhone's reach may not be extensive enough, but the opportunity
for engagement is a trend many handset-makers are working to replicate.
Spero thinks the iPhone is just a proof point for mobile advertising. It has served
as an example of where the industry Is going tc be In a few years - and where
the iPhone and Its successors go, the advertisers are sure to follow.
"You'll see devices that take advantage of large screens, fast networks
and location Information," Sperc said, "and I think that is a highly,