Apple is about to make it easier for Hollywood to use the iPhone as a promotional tool to tubthump new movies and TV shows.
The company unveiled iAd as its latest i-branded offering that will enable marketers to more effectively create spots that are integrated in popular apps on the mobile device.
The mobile advertising platform, Apple’s first foray into the space that Google has dominated online, won’t just help marketers but turn into a lucrative new revenue source for the computer maker, as well, especially as consumers spend more and more time staring the screens of their mobile devices.
Apple will sell and host ads created for iAd. Developers will receive 60% of the revenue.
“We have a lot of free or reasonably priced apps,” said Apple chief Steve Jobs while showing off iAd’s capabilities during a developers conference in Cupertino, Calif., on Thursday. He touted the iAd after unveiling the next version of the iPhone’s operating system, to roll out this summer.
“We like that, but our developers have to find ways to make money,” Jobs said. “So (they) are putting ads into apps, and for lack of a better way to say it, we think most of this kind of advertising sucks.”
Studios have already benefited from making games and other interactive offerings available as downloadable apps for free or a minimum fee for the 50 million iPhones on the market. There are 35 million iPod Touch devices, on which Apps can also be installed.
The studio offerings are usually some of the most downloaded because they’re entertainment-related or associated with recognizable brands.
Jobs demonstrated an interactive ad for Disney and Pixar’s “Toy Story 3” that offered up film clips, a GPS that located the closest theaters playing the toon and mini games.