Pitch deck: How Apple approached advertisers its first ads business
Some say Apple’s long-awaited privacy update paves the way for an extended run at ad dollars. What better time, then, to take a look back at where Apple’s ambitions for advertising started — iAd.
Launched in 2010, iAd was a mobile advertising platform for in-app advertising. At the time, it was sold to marketers as a way for them to reach premium audiences on Apple devices, according to a pitch deck obtained by Digiday and verified by three different agency execs who worked on iAd campaigns.
Naturally, Apple had high hopes for iAd, believing it would someday account for 50% of the market. It never got even close. In fact, eMarketer pinned iAd’s grip on the mobile display ad market at just 5.1% in 2016. For various reasons, advertisers didn’t take to it in the way Apple had hoped.
To understand the trials and tribulations of iAd, here’s a closer look at the pitch deck the company used in 2015 to loosen advertisers’ pursestrings.
At a glance, iAd seemed like the mobile equivalent of nirvana. Here was innovative technology that let advertisers create dynamic in-app ads targeted at a fast-growing community of affluent iOS device owners. It seemed like a small price to pay for the hefty $1 million per campaign fee and advertisers ranging from McDonald’s to Kellogg’s jumped at the opportunity.
iAd only served ads to iOS devices (iPhones, iPod, Touch, and iPads). Initially, this was seen as a win. It was pitched as a way to reach unique audiences in key markets. Eventually, it became a problem. Despite the popularity of Apple’s devices, the smartphone market was swarmed by Android devices. Even in 2013, Android’s share of the smartphone market accounted for around 70%. As a result, iAd’s restrictive approach to serving ads became a real issue for marketers who wanted to run campaigns that targeted all device types and a much wider audience base.
For all the flaws with iAd, it did offer some interesting targeting options, and its inventory did grow thanks to the proliferation of iOS devices. iAd never did become the dominant mobile ad platform, but it could have become an important niche in the wider ecosystem.
Five years in and the outsized expectations of iAd were clear. It cost €17,000 ($20,000) to run an iAd campaign in 2015 — a far cry from the $1 million the format cost when it was billed as a seismic change for advertisers. Still, iAd’s price point was always going to be an issue in a market that was still in development — even as recently as 2015. It meant that iAd was only ever going to be able to capture so much investment.
“This was because it was still CPM based versus what other performance ad networks were offering with low-risk buying models such as cost per install,” said Shumel Lais, CEO of mobile advertising intelligence business Appsumer. “The majority of ad spend that has the goal of driving app installs is performance based, and the unit economics just weren’t favorable.”
Apple focused iAd’s pitch on it being able to deliver beautiful-looking interactive campaigns. Advertisers were able to take advantage of the sophisticated technology baked into iOS devices from the accelerometer, 3D graphics and other interactive features. No wonder the format was regarded as better suited to branding campaigns over performance advertising in some circles.
Apple stressed that iAd delivered results. But advertisers had no way to verify that. Marketers wanted to access third-party information on where their ads ran and around engagement metrics, for example.
Even when it was clear iAd was struggling back in 2015, Apple stuck to the original vision. In fact, it arguably doubled down on what it felt were iAd’s unrivaled creative capabilities, premium inventory and access to targeting data gleaned through its App Store as its campaigns from advertisers like Nutella show.
Workbench was Apple’s way of allowing advertisers to create and subsequently manage their campaigns. Mareters could build customized banners in minutes, select their audience and target price before tracking the performance of the campaign. The self-serve version of iAd campaign management attempted to bring down the prohibitive cost of the format.
Workbench meant that advertisers could run ad campaigns within Apple’s app ecosystem themselves to either drive people to a site, a download from iTunes or get someone to watch a video.
Marketers were briefed on how iAd campaigns could encourage people to download content from the iTunes store.
But if iTunes wasn’t a possibility for marketers they could always get their ads to convince people to watch a video as broadcaster NBC did for TV series Revolution.
Insurance firm Allianz used iAd to push people from whatever app they saw the ad in to a mobile web page where they could get a quote.
Once iAds were out in the wild, marketers could see how well they were performing from the dashboard.
Results could be downloaded from the dashboard, with marketers having the ability to view it all by time period or metrics like conversions and average CPM.
Misfits Gaming partners with The E.W. Scripps Company in a bid to bring esports content to Floridian television viewers
Misfits’ is the most prominent Florida-based esports organization. Both its Call of Duty League team and its Overwatch League squad are based in the Sunshine State.
How Salesforce is gathering its own customer data through its new streaming video play
Salesforce is combining data from Salesforce+ with data gathered from sales and customer service channels viewers inside its customer data platform.
‘We’re all figuring out what our new reality is’: How DTC underwear brand Thinx is diversifying its media mix with more OOH
As a cookieless future and Apple's data privacy updates loom over advertisers, at least one DTC brand is diversifying its ad spend by doubling down on OOH efforts.
SponsoredHow retailers can be ready for holiday shoppers this year
Suchi Sastri, managing director and partner, Boston Consulting Group As the holiday season approaches and the pandemic continues to evolve, retailers want to know what to expect. Will e-commerce continue to grow at the rate it did last year? How big of a role will in-store shopping play in holiday shopping? While it’s still early, […]
Pay On Demand: Immediate payment for work growing in popularity as tech companies fight for talent
On-demand pay could be just the ticket for industries like the restaurant business struggling to find and keep workers in key roles.
‘It’s really just like a catalog’: Overheard at the Digiday Media Marketplace Strategies Forum
Top concerns expressed included navigating selling on a multitude of new marketplaces and maintaining brand equity in the face of third-party sellers