I just read an interesting blog post by Mac developer
Manton Reece
titled
I hope iAds fails
(via DF).
He makes two very good points:
-
“If you are not paying for it, you‘re not the customer;
you‘re the product being sold.”
-
“I don‘t want to see ads in my apps, and I don‘t want
Apple to ever lose even a little of what it means to be a
product-driven company.”
I agree wholeheartedly with the sentiment, but I think he’s
missing an important part of the picture.
When Apple first announced its
iAds
advertising program, I joined the nerd herd and assumed they were
trying to head Google off at the pass. Google clearly thinks that
in-app advertising is going to be a big deal, and as the dominant
advertising-engineering company (AdEng? AE?) they want to control
that market.
Google paid $750 Million for
AdMob, a company pursuing exactly that aim
and one which Apple reportedly also wanted to buy.
Yes, that would be a terrible outcome for users and indie developers
alike.
If people get used to ad-supported apps, it will be much harder to sell
small apps, and small apps are the foundation of the ecosystem.
And, of course, the user experience will be severely degraded for most
types of application.
But I now think that’s unlikely, and I further think Apple is on
to something more interesting (and arguably more innovative) than
Google’s subtlety-of-napalm approach to advertising.
There are, I believe, three interesting scenarios where in-app advertising
is essential to the very concept, and by no means a bad thing for users.
Whether it destroys user experience in these cases depends on the
interaction design, not the concept itself.
First: Apps that are really about shopping.
Take, if you will,
BabyCenter.
Here is a web site that is sort of about community (an online network
of people expecting or having or raising children).
Maybe it’s even good at that.
But this is undeniably also a site that aims to aggregate
people who need and want to buy stuff of a certain sort.
The web site makes it very clear that this is what they’re
about, and they even have an online store of their own.
There is nothing wrong with this, and BabyCenter is very open about
it.
How should a BabyCenter App make its money? By charging people to download
it — people who, after all, are just as likely to go there because
they need stuff as for any other reason? Or should they help
connect eager purchasers to eager sellers?
(The BabyCentrists have two iPhone apps in the App Store already,
one paid and one free, but no BabyCenter app per se.)
Have you looked at
LookBook?
There’s a concept that would be great as an iPad app,
and it would be almost criminally negligent to exclude the advertisers.
And for their demographic, it’d be smart to make it a free app:
the kids need to save money for clothes!
There are many more, but you get the idea already. Some things are
simply about shopping, even if they might be complexly about something
else too.
Now the question is: what sort of ads should those be?
Should they be high-quality, unobtrusive, Apple-style ads?
Or should they be ugly, creepily prescient, Google-style ads?
Second: Apps that are ads themselves.
More and more Hollywood movies,
TV shows,
and other entertainment products have supporting apps
these days. It seems to be the horrifically bloated interactive
Flash site of the new era. And the kids, apparently, will download
such stuff.
It seems obvious that the ad-as-app should also have in-app ads.
You already have the brand loyalty, since after all they downloaded
your ad-as-app. Why not make an extra buck selling them something else?
The only catch is that you probably don‘t want to sell your
competitor‘s stuff. I assume Apple will give you some control
over that.
This category of app may seem superfluous, but remember when you were
young and fannish yourself. There‘s nothing new about hawking
and extra
bauble
to the already-sated shopper.
Third: Newspapers and Magazines.
Of the three areas where I see in-app ads as essential, one stands out
as both obvious and difficult: ”print“ ads.
Consider this: you can subscribe to the
New Yorker
for under a buck an issue. They sell about a million copies each week. And
this would be completely unsustainable without ad revenue.
I think the App Store gives us a chance to finally have
high-quality magazines on portable devices, and I‘m impressed with some of
the early efforts (cf.
Popular Mechanics).
But even though I‘m happy to
pay for them, I can‘t imagine that business working without ads.
That‘s the obvious part. The difficult part is that, thus far,
nobody has made this work. I would even argue that it has not worked
for magazine web sites, though the
Wall Street Journal
has apparently done pretty well with a subscriptions-and-ads model.
This has got me thinking. If you remember the iPad
introduction,
you will remember that Apple is very keen on the iPad being used as a
platform for high-quality publishing. The New York Times had an app
available at launch, but it turned out to be a strange and indecisive
beast: the ”Editor‘s Choice“ offers very little
content, and has highly obtrusive, poorly designed, in-house ads, and
costs nothing even though this is the strongest brand in American
periodicals.
I believe there are two big reasons why this hasn‘t yet worked out
as planned. First, magazine publishers generally lack the technical
expertise to make good technology choices (let alone develop software).
Second, they have no idea how to approach the new ad market. Their
traditional approach is simply too inefficient; and yet they are reluctant
to cede any control.
Of these, the first problem will solve itself with time, as there are more
people who can design and build a solid app. The
Guardian,
for example, has a good iPhone app and a good web site, even though
they‘re not yet on the iPad.
The second problem, though, requires major partners for the major print
media. Google has not yet established itself as a good partner for
high-quality ads, and Apple is attacking that market as opposed to the
long-tail advertising market Google effectively monopolizes.
It‘s starting to seem obvious, at least to me, that Apple is much
more interested in using its ad platform as a profitable carrot with which
to bring serious publishers to its devices. I think Apple believes the
numbers will speak for themselves, and publishers will be happy with
Apple‘s cut if it gives them Apple‘s quality. This is
especially important for major lifestyle brands. And if they go in-house
or switch to another ad provider later, Apple still wins, with more and
better content on iPad.
If small publishers can also benefit from this, so much the better.
And if people are going to put ads in random apps, Apple wants to
at least have a shot at mitigating the user-experience failure and
getting a bit of cash along the way.
But I really do not believe Apple is trying for an ad in every app.
Plenty of room left for innovation.
Apple and Google are going to be the big players in app
ads out the gate, but there is still room for innovation.
Apple doesn‘t play the
long-tail
game with any seriousness.
And Google doesn‘t do aesthetic quality (in fact they are
virulently indifferent to it).
That suggests one clear niche market. And because you can plug in
ad content in apps though a variety of technologies, neither Apple
nor Google can establish any technical barrier to entry.
Another place I see startups, or at least studios, emerging is around
truly interactive ads. Call them ads-as-games. The iPad, and perhaps
some day its competitors, give you an amazing level of creative freedom.
And that means you can push boundaries, if you know how. The publishers
don‘t know how, nor do the traditional ad agencies.
While some people will just churn out multi-platform content from their
publishing workflow and use whatever is easiest or that, user experience
be damned (cf. Wired), others (cf. Pop Mech) will try to lead the pack
through innovation. And they will want advertising content that
helps them keep that lead.
The danger & the seduction.
As a loyal Apple customer, I want them to stay focused on products, not
ads.
As a potential app developer, I want the App Store ecosystem to remain
healthy and profitable for independents who want to sell their best
work to real customers.
But as a potential iPad publisher — I‘m thinking seriously about
starting an iPad magazine for fun and profit — I want a one-stop
shop if possible. I would have to deal with Apple anyway for all
financials and metrics of the distribution process. I could save a lot of
headache by just plugging into their ad network and having it all
integrated.
I‘m still not sure that‘s any better for the consumer. I trust
Apple to have high-quality ads, but I don‘t trust them at all to have
depth. I definitely trust Google to have the depth, because they will find
a way for Aunt Minnie‘s Tin-Can Cookie Cutters to get into the stream at
$3 a click, but of course their quality will be uneven.
I hope that innovative startups will bridge this gap.
I do think there is already a precedent for high-quality, ad-free,
reasonably-priced paid apps in the App Store. And I think there is
enough momentum behind that, and so much potential in this class of
devices, that it will not be broken by ad-riddled crapware any time
soon.
Thus I think it‘s possible, and maybe desirable, for iAds to "fail"
in terms of undermining paid apps, while also succeeding for both Apple
and publishers in helping finally port the print-magazine revenue paradigm
to the digital world.
And I think there are other things besides traditional publishing that
would benefit, and whose users would benefit, from a high-quality
in-app advertising system.