AdExchanger.com discussed the new iPad and the advertising opportunity enabled by it with Jumptap CMO Paran Johar.
AdExchanger.com: What makes the Apple iPad (or tablet) a "mobile" opportunity? For Jumptap, what are the key differences of the iPad that makes it mobile versus the online experience of a laptop PC's browser?
PJ: Two key components. The first mobile opportunity is extending the reach of existing iPhone mobile applications to a new iPad platform. Our network of application developers, who are both publishers and advertisers with us, will have an immediate opportunity without making any technical changes. But to fully take advantage of the new platform, new ad units will need to be deployed by both publishers and advertisers for applications that are customized to the new factor of the iPad. The second mobile opportunity is for brand advertisers that are seeking consumers that are on-the-go. The ultra-thin, sleek design makes iPad a highly portable device, meaning consumers will have this in the car, on the plane, in the coffee shop, and in their handbag. For years, mobile advertising experts have built business practices for how to take advantage of mobile's unique aspects, like geo-targeting and location based services such as couponing. These will extend onto this new platform.
AdExchanger.com: What is the potential impact of the iPad on digital advertising? A year from now, any guess as to what share the iPad will have of total mobile advertising spend?
PJ: iPad's impact extends beyond simply mobile to impact digital and traditional advertising. Its personal media services will further fragment audiences that previously shared experiences in front of the television and further pull consumers into digital, away from traditional media such as newspapers or magazines. For digital advertisers, both PC and mobile, it provides opportunities for even more interactive brand experiences.
In terms of share of iPad vs total mobile ad spending in 12 months, an overly optimistic ratio would be looking at projected iPad to iPhone sales. If there are 10 million iPads (as projected) then compared to 75 million iPhones (and iPod Touches) today, then the largest scenario would be approximately a 10-15% share, which would completely ignore Android, iPhone growth, and the numerous other mobile devices. Given those other considerations, while still keeping in mind Apple's history of exceeding expectations in mobile, 5% is not unreasonable.
AdExchanger.com: Is the mobile channel's "real money" in building and having users download branded apps? Or, is it in serving display ads in mobile apps/the mobile browser?
PJ: Apps are certainly key in mobile today, primarily because of current browser capabilities including iPad's lack of Adobe Flash support. But long-term, look at the PC equivalent. How many "apps" have you downloaded for your PC lately? Probably many fewer, if any. That's because the PC browser provides interactive user interface capabilities that can only be served using apps today in mobile and on the iPad. Increases in mobile network bandwidth will also increase browser based application adoption by making sophisticated webpages more responsive.
By John Ebbert