Apple Rollout of Tablets Bodes Well for Mobile Ad Prices

So Apple announced at its most recent events that it has had the strongest iPhone launch ever. The company then went on to say that it has sold 170,000,000 iPads. If that doesn’t tell you something about the value of mobile advertising, nothing will.

Along with the iPad revolution, mobile advertising has also risen dramatically. Although there are still price differentials, they will be made up for in volume.

The newest iPads, which will be available to order in early November, and probably given to everyone who doesn’t already have one as Christmas gifts, are thinner than the old ones. The large iPad is lighter, too, and has been repositioned as the iPad Air — meaning it is expected to replace the laptop even for office users. The Apple workflow software, iWork, which is like Microsoft Office, is now free, which means families will buy their students iPads instead of computers for school, and governments will continue to issue them to employees. The iPad is already the standard issue to employees of the Rwandan government. Oh, and did we tell you that the new iPad mini is available with retina display.

Older models have not been taken out of the lineup, but have simply been offered at a lower price; you can now buy an iPad for $299.

Let’s not even talk about  the other brands, such as Google’s Nexus 7 that are all selling well, but just focus on how Apple has repositioned its products, because Apple may not be the biggest in the market, but it’s the ultimate thought leader in the mobile device market.

When Steve Jobs introduced the first iPads, in an era that now seems like the dark ages but was really April 2010,  he positioned it as the “lean back” device; the device for consuming content. It soon became the way people watched video. And it looks as if TIm Cook has now repositioned the tablet as more than just a consumption device; it may soon be the only computer people in developed countries own, just as the smartphone is the only computer many people in developing countries own. It is about access to content inexpensively and on the move, and access to tools of content production as well.

We saw this in 2010 and began developing mobile advertising formats with our team. The suite of High Impact formats we’ve been selling to agencies and brands through ZINC have become highly successful for us, and the inArticle video format,  has been called game-changing by agencies who have seen it and signed up. InArticle, which appears alongside printed content is a way to expose brands to new audiences that are reading rather than watching video to which you can append pre-roll.

in 2014, we predict prices for mobile ads will rise as well, and will come to an equivalency with desktop ads.

And we’ve been right before:-)