Apple will allow in the future advertising on his iPhone. For a detailed report on the whole issue and a video please see >>here<<.The ad however has to be special. For an ad to be displayed on an iPhone it has to be highly “interactive” while at the same time being very “emotional“. Jobs provided a number of ad-examples who had one thing in common; they were extremely well done & sophisticated. As for the emotional criterion I wonder if there is any product on the market users are not being “emotional” about anyway 😉
One should also keep in mind that although the ads in question are “interactive” they should be, in my opinion, not be compared to search ads but maybe to content sensitive ads. The ads shown by Jobs were highly complex etc. and I wonder if advertiser will create a game etc. for every product they launch. So maybe the iAds will be more like a new kind of fancy & sophisticated “banner ad”.
Jobs however explained in his speech that the ads should be a chance for the developers of free iPhone applications (apps) to create revenue though advertising in their apps. According to Jobs 60% of the advertising revenues would go to the developers of the app.
As the standards (emotional & interactive) are quite high I reckon that thus mainly trade-mark owners will use this opportunity to invest into the image of their brand. As the investments into such an ad will be significant I doubt that thus the ads will also target “long tail” users. Another argument against a wide range of ads is also that Apple is obviously keeping a close eye onto the ads displayed on his system. This however means that Apple will not be able to profit from the liability exception in ART 12. et seq. of the eCommerce (Directive 2000/31/EC). From a legal point of view the ads will have the advantage that the ads displayed on iPhones will in most cases be not confusing for customers as they will clearly state that they were done by the trademark owner.
So summing the whole move up, I don’t really see the business models of the other advertising companies in danger as Apple, to my understanding, plans to remain in the “premium” branding segment, leaving the “long tail” niche advertising market largely to its competitors. For now at least 😉