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May 16, 2009

Blogging 101iPhone’s Appealing, Inexpensive Apps Driving Mobile Ad Growth

By Marian Short

Mobile ad spending could nearly double this year to $200 million, due largely to the iPhone’s runaway success, according to The Wall Street Journal.

Companies are keen to access the iPhone’s desirable owner base: young, well paid, highly engaged with mobile tech and currently over 20 million strong. While numerous advertisers offer streaming video ads to smart phones, an increasing number are creating—or redesigning—downloadable apps to lure in a demographic that is minimally responsive to TV advertising. Not only do iPhone apps tend to be cheap, they also capture higher levels of engagement. For example, a recent and successful hamburger app for California-based CKE Restaurants Inc. cost $12,000, while a Burger King app launched for Valentine’s Day was downloaded by 14 percent of its mobile audience. Compare those with a less-than-one-percent interaction rate for online banner ads.

For more details you can read the full article from the Wall Street Journal (subscription required).

Fast Company’s blog also posted on the WSJ article and pointed out that companies have yet to really incorporate other iPhone. Medialets, however, has become the first company to roll out a “shakeable” ad for its Levi’s Dockers campaign, which takes advantage of the motion sensor.

Posted by staff at May 16, 2009 04:26 PM

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