The iPhone’s Been Good To AdMob. A Quarter Billion Ads Served, And Counting
by Erick Schonfeld on July 10, 2008

With the 3G iPhone about to go on sale tomorrow, mobile ad startup AdMob is releasing some data on its iPhone ad network. Since it launched the network back in July, 2007, AdMob has served 249 million ads to people’s first-generation iPhones. Last month alone, it served 52 million ads worldwide and 34 million in the U.S. The monthly growth those numbers is up 32 percent and 26 percent, respectively.

To put this in perspective, though, AdMob serves 3.5 billion ads each month across all models. So iPhone ads in the U.S. represent only one percent of that total.

The question is whether that growth will continue, or whether AdMob’s phone-specific ads will be superceded by regular Web ads. After all, the iPhone has a fully functioning browser that shows the same ads you see on your desktop.

One question is whether it is a better advertising vehicle than other phones. Another is what form will those ads take. Do advertisers need to create special ads tuned for the iPhone? Or can they just buy regular Web ads and assume that people will see them in the iPhone’s fully-featured browser? Silicon Alley Insider raised this question earlier in the week, noting:

. . . an iPhone’s browser loads an ad the same way a computer does — not the same way a Motorola Razr does. So if the iPhone is just loading a normal Internet ad in a custom size, there’s no real need for a special mobile ad network.

In a comment on that post, AdMob CEO Omar Hamoui responds:

You essentially assume that simply because “regular” ads can be served, they will inherently be optimal. . . . The reality is that . . . ads designed for the web as viewed from a PC are not and will not be optimal.

Although the idea of a unified web where everything is exactly the same (including advertising) is intriguing, the reality is that all the recent advancements in digital advertising (search, behavioral, demographic, and psychographic targeting, etc…) have been about differentiation of audiences rather than amalgamation. In the context of advertising, there is significant value locked up in even subtle differences and we know from experience that the device you are browsing on is no subtle difference.

Whether regular ad networks can play that game remains to be seen. But AdMob already tunes its ads for the specific phone model that the ad is being sent to. The current set of iPhone ads, for example, take advantage of the iPhone’s large touch screen to draw those interested deeper into an ad. And they can also trigger some of the iPhone’s special features, such as launching a Google map. For instance, in the Jaguar ad below, the Google map shows nearby Jaguar dealerships.

Similarly, ads that let you make a phone call for more information or to order the item being advertised are different than most banner ads (although some of those have click-to-call features too, it stands to reason that a click-to-call ad would work better on a phone). And in fact, the company claims that the response rates of these iPhone ads are better than other mobile ads.

With the 3G iPhone coming out with new features and a whole slew of apps, AdMob needs to keep up with the changes in the device. Advertisers will flock to wherever they can get the best response rates. The more that AdMob can tune its ads to the specific location and experience of the viewer, the better the response rates should be. I will ask Hamoui how he plans on doing this at the upcoming Mobile Web Wars Roundtable that I will be hosting.

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Comments

That’s pretty good, but it is self released data.

 

i hate ad networks…..there is now an ad network for free iphone apps.

 
silicon valley dropout - July 10th, 2008 at 8:08 am PDT

can you guys just merge all these iphone threads ionto one thread

 

According to this report, mobile marketing revenues will increase from 1.8b in 2007 to more than 24b in 2013 so get ready to see a lot of ads!

That’s going to eat into advertising budgets for other channels in a major way - who’s going to lose out?

 
 

To be honest unless the add is for free food/drink near my current location, I would avoid anyone’s product that pestered me with ads on my mobile.

We are inundated with enough marketing. It’s time to take action.

 

@Rob: Internet Activists GO!!

 

Fuck mobile ads. I hope Mobile Firefox will come soon with adblocker.

 

How does AdMob compares with Google Mobile Ads? It is strange Google Ads reacts slowly to mobile and Youtube and is not as effective as it is online.

 

That implies 65% of iphone users are in the US.

 

interesting article, the only problem is that the jaguar example ad doesnt work on my iPhone. I guess there is a need for an iPhone specific ad network.

 

Media - advertisements, content, etc - should fit the method of delivery. In this case an iPhone.

A regular desktop ad WILL work on the iPhone, but it’s not optimal. Just as shrinking a roadside billboard ad into a web banner ad WILL work, just not optimally.

You’re also forgetting the content and context of these ads. Roadside billboard ads use their location to attract potential customers. “Turn left at the next exit”.

Mobile advertisements can do that in the same way. “Click here to call” or location based ads that just don’t work on the desktop web.

 

let’s think about this for a second… 250m ad impressions. at a generous $3 cpm, that’s $750k over the last year. not insignificant, but not a standalone business either. do you have to write a story about everything iphone and treat it as something sacred?

 

@Rob: check out AdSpeek. We are trying to do just what you describe. Location Based Advertising.

 

There is and will continue to be so much money in mobile advertising… especially while mobile phone computing is still a novelty and people aren’t desensitized to ad displays. The question becomes when will mobile advertising (in mobile format) battle with desktop internet advertising? Maybe this is already happening. Anybody have insight?

James
http://www.readtheanswer.com/index.php?RTA=web2

 

It is difficult to make people enjoy ads on their mobile phone…

Nath
http://www.themostpowerfulcompany.com

 

@OneSkoop: the Jaguar site works perfectly on iPhone. Check it out:

http://www.thevisionairegroup......dband.html

Hope you have a iPhone 3G handy. ;)

 

Mobile advertising needed innovation in order to succeed. I think AdMob is a great company that has done a great job to stay on top of the ad delivery business.

I love their live ad tracker on their website!

 

WOW, mine says that the latest update is the 1.1.4 update

Disappointing much?

 

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