Apple just made Apple Pay, its new mobile payments system, available to consumers, but the company already has plans for using the service to bolster iAd, its mobile ad network: A new feature will integrate Apple Pay with Apple’s iAd mobile ad network in the form of a tap-to-buy button embedded in mobile ads, according to those familiar with the developments.
Advertising execs are praising the new feature as a boon to direct response and retail marketers, and as a way for Apple to differentiate the struggling mobile ad network. Apple declined a request for comment.
“It’s something I would definitely bring to clients,” Rachel Pasqua, mobile practice lead at media agency MEC, told Digiday. “We do so much mobile rich media for Paramount film releases that it would be fun to test this with.”
Pasqua added that the feature would also be intriguing for direct-response campaigns conducted by clients Ikea and Netflix.
But Twitter and Facebook are using tap-to-buy ads to make money for themselves; buy buttons in iAd is intriguing in that they would allow the publishers that work with iAd to generate more mobile ad revenue from their apps.
Apple CEO Tim Cook said last month in an open letter to customers that Apple is foremost a device, not an advertising, company, and that its primary motivation for operating iAd is to help app publishers monetize. App publishers that use iAd retain 70 percent of the revenue generated, with 30 percent going to Apple. The stronger the crop of iOS apps, the easier it is to sell iPhones and iPads, the thinking goes.
Buy buttons in iAd would become even more compelling when combined with iAd’s new retargeting feature, which allows marketers to retarget users based upon their in-app activity. If a user is shopping for an item in a retailer’s app but ends up abandoning their shopping cart before purchasing, the retailer can now retarget that user with a mobile buy button ad for that item.
The new feature is expected to be in market by the end of the year, just in time for the holiday retail rush.
IAd has also been ramping up sales efforts on iAd’s add-to-Passbook feature, which allows iOS users to redeem coupons from mobile ads and send them directly to Passbook, Apple’s mobile wallet app. In this scenario, a toothpaste brand could send a coupon to iPhone users through iAd. When tapped, the coupon would be automatically added to Passbook, where it can be subsequently redeemed at the register.
“It would allow them to drive more coupon retention,” Pasqua said. “One of the stumbling blocks to couponing is friction and this would make it more seamless. I have all these good intentions to clip coupons but the process is so fragmented.”
Add-to-Passbook ads are intriguing to marketers because they “close the loop” attribution-wise, according to Jeff Malmad, managing director of mobile at media agency Mindshare. “It’s a nice way to track consumers through the customer journey,” he said.
These developments have sparked some much-needed excitement for iAd, where both the minimum buy-in price and its allure have gradually fallen since its inception: iAd’s minimum buy-in was $1 million when it launched in April 2010. That was halved less than a year later. The minimum was cut to $300,000 by July 2011, and again to $100,000 in February 2012.
“The mobile experience has transformed the shopping experience, and the ability to understand what consumers are doing on an aggregate level [with iAd] is very powerful for brands,” Malmad said.
Image via Apple
The Rundown: Google’s Marketing Live announcements signal strategic priorities
Upcoming features, including ad formats for short-form video and retail media promise marketers better measurement.
Member ExclusiveMarketing Briefing: ‘An era of outrage porn’: Social experts weigh in on the value of brands’ edgy, viral content
Social media experts have mixed feelings on brands chasing viral moments, noting that it's a high-risk one that can come with a viral moment and boosted sales or online calls to cancel the brand and bad press.
Why Clarks enlisted influencers to bring users into its metaverse experience
As more brands dip their toes into the metaverse, they risk burning users out on branded experiences that are more akin to interactive commercials than games. Proper gamification is one way to circumvent this, with the most well-designed experiences inspiring community conversations and content in their own right.
SponsoredHow marketers and retailers are unlocking the true value of retail media
Ben Kneen, senior director of product management, Xandr It’s a challenging time for retailers in the advertising industry. As they cope with supply chain woes and inflation-related pressures, they seek high-margin revenue streams amid evolving privacy regulations and massive shifts in identity solutions — including IDFA, the deprecation of third-party cookies and more. In light […]
Inside Bloomberg Media’s regional expansion plan into an economically uncertain U.K.
Almost every downturn presents an opportunity to take advantage of change and win —even for publishers. For Bloomberg Media, that opportunity is to become a bit more mainstream.
How this founder evolved the agency he started in 9th grade into an incubator for new brands
XenoPsi is splitting into two main agency brands: Method One and Function Growth, while a third unit houses direct investments in startups.