iAd

When I decided to write about Apple introducing a new advertising platform for mobile devices, I came up with the witty title of iAd to play off their newly released gizmo the iPad, but apparently that's actually what they're going to call their new service anyway. How creative of them...

This will allow Apple (and developers) to make money off advertisements appearing in various Apps. This benefits the owners of iPhones because it means that more content will be free, because developers will be able to make money off advertisements rather than charging a fee to download the App. This benefits the developers because more people are apt to download something for free rather than something they have to pay even a meager sum for. And it benefits Apple because according to the article linked above, it could mean $400 million a year in revenue.

So it's all a win-win-win, right?

Well, not so fast. What about the advertisers? How will this benefit them?

It allows them to reach individuals easily on their cell-phones. It also allows them to use Apple's customer data to create effective mobile ads targeted at specific demographics.

But are people really going to take kindly to advertisements on their cell-phones? I've had a few Apps with prevalent ads, and they're just as easy to ignore as banner ads on websites. They're just another nuisance to be tolerated while opening an app for a brief moment. So it's great that Apple is finding another source of income for their developers. But the only way this will work is if the advertisements actually generate awareness and sales, something that isn't guaranteed.