i. Apple introduced iAd mobile advertising in 2010 to provide a more interactive and engaging advertising experience on mobile devices compared to other forms of online and mobile advertising. ii. iAd advertising appears within iPhone applications and allows advertisers to incorporate rich media like video, games, maps and more to interact with users. Advertisers are charged based on the number of user clicks or interactions with their ads. iii. The benefits of iAd for advertisers include targeting the large audience of iPhone users, providing richer storytelling capabilities than other mobile ads, and allowing users to directly download apps and content from within the ads.

1. Apple Mobile Advertising
Final-term Assignment
By:
Eka Darmadi
Faculty of Business and Economics
University of Surabaya
2010

2. “iAd”
Next Level of Mobile Advertising
By:
Apple.Inc

3. Executive Summary
This proposal is to give the information about our new advertising method
The iAd occupy more than 48% of us market in 2H 2010, which valued as $60 Million of $250
Million from global market.
The Cost of Today’s Advertising is too expensive
iAd offers Advertising that not too costly but more effective than conventional advertising we
can meet today. The company usually spend around $100.000 / Year just for advertising, and this
will be their fixed cost, and keep growing along the advertising will be more costly than today.
But the problem is your advertising now is effective or just spends your money without good
feedback from your customer.
iAd Mobile Advertising
We want to improve everything about advertising, and as an apple company, we want to joint
this opportunity, because our market research tell us the mobile advertising will grow fast along
new technology and innovation there. Good advertising contains interaction and give the
emotion to the audience. So, they can feel more interested and buy your company’s product. And
with the iAd, we divide your company’s advertising into 20 different categories from: Book,
Business, Education, Entertainment, Finance, Game, Healthcare, Lifestyle, Medical, Music,
Navigation, News, Photography, Productivity, Reference, Social Networking, Sports, utilities,
Wheatear.
The Advertising which appropriate with market segment
iAd has 20 different categories. When you want to put your advertising, we will categorize based
on 20 different categories. So, your advertising can be read by “right” person. For the example is
the advertising about movie, “Toy Story 3”. We will put this advertising on the category of
entertainment. So, people who love the movie, will see this advertising ( Toy Story 3 ) and they
will be interested with this advertising, better than other commercial advertising like Tv Ads.
Usually the customer will be less interested to watch the advertising on Tv.

4. I. HISTORY OF APPLE
Apple Inc. was established in 1976 in Cupertino, California and incorporated in
January 3, 1977. For 3 years, The first name of the company was Apple Computer,
Inc. Ans then on January 9, 2007, the word “Computer” was removed to reflect the
company's ongoing expansion into the consumer electronics market in addition to its
traditional focus on personal computers. Apple had 46,600 full time employees and
2,800 temporary full time employees worldwide and had worldwide annual sales of
$65.23 billion on September 25, 2010. Moving in Mobile Device Company, and
focusing at the Mobile Phone, Tablet PC, and software maker and distribution.
II. INTRODUCTION TO PRODUCT OF APPLE
MAC :
A. iMAC
iMac has the size from the first 15-inch .
21.5-inch or 27-inch display with edge-
to-edge glass covers nearly the entire
front of the enclosure. You can watch
Movies, TV shows, websites, photos,
and everything stunningly on the 16:9
widescreen iMac display.
B. MacBook
MacBook has size of 1.08 inches thin and only 4.7 pounds, the sleek
MacBook cuts a slim profile on any desk (or in any backpack or briefcase).
MacBook has a seamless. It’s made of rugged polycarbonate that withstands the
rough and tumble of everyday life at school, at work, or while traveling. And

5. since the bottom of the MacBook is covered in a nonslip material, it always stays
right where you put it whether it's on a desk, table, or airplane tray.
C. Mac Pro
You don’t need to turn the system on its side or struggle
to reach into awkward spaces to make changes. You
Just need to remove the side panel for instant access
to everything. The most powerfull mac ever with
12 core processor inside.
Mobile Device
A.iPhone
Started with three years of experience designing
and building the phones that redefined what a phone can
do. iPhone 4 is the result of everything they’ve learned
so far. And it’s all contained in a beautiful enclosure a
mere 9.3 millimeters thin, making iPhone 4 the world’s
thinnest Smartphone.

6. B.iPod
• Touch
Pioneering technology
built into iPod touch is
how you’re able to flick,
tap, and pinch. It’s what
makes a racing game feel
so real. It’s why you’re
able to see a friend crack
up at your jokes from
across the globe. And it’s
the reason iPod touch is
the most incredible iPod
you’ll ever own.
 Nano
IPod nano has been completely redesigned with
Multi-Touch the same technology that makes
iPhone, iPad, and iPod touch so amazing. Now
it’s half the size and even easier to play. And
everything you want to hear is just a tap or swipe
away.

7. 1. iTunes Store
a. Music
You’ll find millions of high-quality,
DRM-free songs on the iTunes Store all
for just 69¢, 99¢, or $1.29. Browse around. Have a listen. See what’s new,
what’s hot, and what other fans are listening to. iTunes recommends music
based on what you already like, so you can always find something new to
enjoy. When you download select albums, you’ll experience iTunes LP a
beautifully designed, interactive world right in your iTunes library. Many are
created by the artists. While you listen to your favorite songs on your Mac or
PC, dive into the lyrics and liner notes, view photos, watch videos, and enjoy
other bonus materials.
b.TV Shows
And you thought you loved TV
before. iTunes brings you your
favorite TV shows, uninterrupted,
whenever you want, however you
want. Even in HD. You can rent or own the latest episode as early as one day
after it airs or rent or purchase past episodes you missed. Choose from
thousands of commercial-free episodes. For shows that air daily, a Multi-Pass
lets you enjoy a month’s worth of episodes. Just download and watch on your
computer, iPhone, iPad, iPod touch, or television via Apple TV.

8. c. Movies
From comedy to drama, romance to
classic, independent to thriller
movies, movies, and more movies
await you on the iTunes Store.
Browse thousands of releases from
every major Hollywood studio. Buy
or rent them in standard or high
definition and watch on your computer, iPhone, iPad, iPod touch, or television
via Apple TV. When you buy select movies, you’ll discover a world of special
features called iTunes Extras including interviews, trailers, and photos you
can watch in iTunes on your Mac or PC.
d.Podcast
The iTunes Store is your source for hundreds of thousands of podcasts. What’s a
podcast? Much like a radio or TV show, it’s a video or audio series about anything
and everything. You’ll find podcasts from independent creators, as well as big names
such as HBO, NPR, ESPN, The Onion, CBS Sports, and The New York Times.
Check out the categories you’re
bound to find a podcast you’ll like.
You can listen, then click to
subscribe. Podcasts download to
your iTunes library automatically, so
you’ll never miss an episode. You
can listen to them on your computer,
iPod, iPhone, iPad, or Apple TV.
And best of all, they’re free.

9. e. Audio books
The iTunes Store includes a well-stocked
library of the world’s best-selling
audiobooks. You’ll find thousands of
titles, and the list keeps growing. Browse
biographies, mysteries, comedies,
classics, self-help books, and more.
Download and listen on your computer, iPhone, iPod, or iPad. Audiobooks
remember where you left off listening, so you can start one on your couch and
continue it on your commute.
f. Applications
The App Store is the ultimate source for mobile apps —
300,000 and counting in practically every category. Many
are even free. Getting apps onto your iPhone couldn’t be
simpler. Just find the ones you want, then tap to download
them.
US Mobile Display Advertising 2010
In the advertising industry overall, revenues
generated by direct and brand advertising are
roughly split 50/50. But in the online world,
where direct advertising is represented
mostly by search and email ads and brand
advertising by graphical display ads, the split
is closer to 70/30 in favor of direct ads.

10. In mobile advertising, both display and search are puny compared to text
messaging ads. Total U.S. mobile advertising for 2009 is estimated at $2.6 billion, up
62 percent. But $2.3 billion of that was from text messaging. Only 178 million was
mobile search, and $140 million was display (both up 80 percent last year). In 2010,
mobile advertising is forecast to grow 45 percent to $3.8 billion, with the breakdown
being $3.2 billion SMS advertising, $253 million mobile display, and $321 million
mobile search.
One of the biggest reasons to be hopeful about the outlook for the continued
growth of the Internet advertising industry is that when you look at the time U.S.
consumers spend on the Internet versus the amount of ad dollars which go there, the
proportions are out of whack. As recently as 2008, U.S. consumers spent 38 percent
of their media consumption time on the Internet (29 percent if you exclude teens and
young adults), but it attracted only 8 percent of advertising dollars. Whereas
consumers spent 37 percent of their media consumption time on TV, which captured
32 percent of advertising dollars. If you believe that time is money, advertising
dollars should continue to flow towards the Internet.
iAds have 23% of US mobile advertising market. Values add $60 million in 8
weeks since we promoted the iAds. To help our developers earn money so they
continue to create free and low-costs apps.

11. III. Today’s Advertising
A. Web Advertising
Web Advertising is a promotion that uses the internet and World Wide
Web to attract customers with expressing purpose of delivering marketing
messages. As we know most of young and teenager always use the internet. This
kind of advertising delivers interaction with user, but they don’t give “emotion”
B. TV / Media Advertising
TV / Media Advertising is the advertising that uses
words, speech, and pictures to communicate the
promotional messages. (Emotion) can give us as a user
passion to buy or try this product.
IV. Effective Advertising
The good advertising can deliver interaction and emotion with user. Television
Advertising has a lot of emotion but no interactivity. iAd wants to be more interactive
than the other advertising on the web and iAd wants to get the emotion from the video.

12. V. iAD
A.Introduction to iAd
iAd is a mobile advertising. iAd was created by
Apple inc. in 2010. The iAd advertising platform
gives Company or end-user to bring the new way
of advertising, with the iAd the company can
promote their product more effectively than other
advertising media, because iAd can categorize
their ads, with our current iPhone apps. Sale in our market today categorize as: work
apps, cooking apps, and much other. example on entertainment apps. We can put
Movie advertising. So your advertising will be more target market.
VI. iPhone Application
A. Work
You can find your perfect business
partner whether you are managing projects,
clients, or your time by iPhone. These are
the examples of the applications : Linkedln,
Salesforce Mobile, Bento, 1Password,
FedEx Mobile for iPhone, Cisco WebEx
Meeting Center, and iTimeSheet.

13. B. Cooking
iPhone has many kitchen
applications which contain of
many recipes of food. The
examples of the applications
are Weber’s On the Grill,
HarvestMark Food
Traceability, Ask The Butcher.
C. FINANCE
iPhone has many applications that
can help you track and save your money.
These are the examples of the applications :
Bank of America – Mobile Banking,
Pageonce Personal Finance, PayPal,
American Express, BillTracker, Yahoo!
Finance.

14. D. Gaming
You can entertain
yourself by playing games
on iPhone. You can buy
those games on
Application Store of
iPhone. The games are like
Rock Band, Harry Potter:
Spells, Angry Birds, Plants
vs. Zombies.
E.Travelling
You can find maps,
language lessons, tour guide for
your destination directly from
your iPhone by the applications
of travelling. These are the
examples of the applications :
Metro Paris Subway, Flight
Track, Zagat To Go.

15. VII. How iAD works ? ?
You can see from the example of Toy Story 3 – iAD beta test :
A. Put the banner on applications
The banner have been
designed and submitted at
apple, then when we
approve the ads, its
goanna be look like.
B. User tab / press the banner
So the window of ToyStory 3 will pop up and start to Loading the content, and the “X”
button at the top, can be press if user want to leave the advertising.

16. C. The example of Main Menu iAD
User can click on the menu they like, this
sample of “Characters”
D. The example of Inside iAD
Sample of Video and Mini Game.

17. Photo sample, Map, Shop.
VIII. Benefit of iAD
A. Advertising on iAD is more interactive than the other advertising from
the other website and also advertising on iAD has an emotion from the
video. iAD has fulfill the requirement of an effective advertising :
delivering interaction and emotion by video & animation.
B. iAD has more than 1 billion applications and those applications has
been purchased. There are more than 7 billion applications used by the
users every day. For every 1 application, the users spend 30 minutes
per day to use the application.
C. iAD has richer media content such as Image, Video, Mini Game, Map,
Sound, Animation, In Ads Shopping.

18. Cost of iAd
Price Click
$ 10.000 5.000
$ 100.000 50.000
$ 1.000.000 500.000
$ 10.000.000 5.000.000
iAd count your advertising by user click, if user don’t click or see your advertising, your credit
click will not decrease, just when user view and watch your ad, your credit of click will be
decrease.
This plan is more effective than other commercial advertising, because we make sure your
advertising at the “right” person. Also better feedback from your customer. better than other
advertising method.
All the cost above include the cost for making animation, video, and server space for support the
iAd all over the world, and the market (Now) still at US market, and based on your country.
Other country will cost at different price and agreement.
For our current developer of iAd we gave them great deal with iAd, 60% revenue will deliver to
our developer and the 40% is cost for maintenance the iAd so, the iAd can run well. This
opportunity is open for all people who want to join us. Developer can create the application then
create the advertising space inside the advertising. So when their advertising is “sold” they get
60% of revenue.
Tap into the Apple audience
iAd reaches millions of iPhone and iPod touch users around the world in their favorite apps.
With the iAd Network, you get access to the Apple audience, the world’s most
engaged, passionate and loyal consumer. This audience:

19.  Has installed more than 7 billion applications
 Has activated over 160 million iTunes accounts
 Downloads 200 new apps every second worldwide
 Spends, on average, 30 minutes per day using apps
 Sets trends and shares with family and friends
Each ad is shown within the many thousands of apps in the network only to the audience you
want to reach. Our highly-effective targeting uses unique interest and preference data that taps
into passions relevant for your brand. Whether they are reading the news, playing a game or
checking the local weather, your ad will make an impact.
Standard Targeting Options
 Demographics
 Application preferences
 Music passions
 Movie, TV and audiobook genre interests
 Location
 Device (iPhone, iPod touch)
 Network (WiFi, 3G)
Every brand has a great story to tell.
iAd advertising combines the storytelling power of TV with the interactivity of digital for
something entirely new. You can now create ads that captivate your audience wherever they are,
within their favorite apps. With the iAd logo on each banner, the audience knows a great
experience awaits them. They can tap with confidence knowing that entering an immersive ad
doesn’t have to mean leaving their app.
Because iAd is built into iOS 4, the innovative mobile operating system that powers iPhone and
iPod touch, you can incorporate a variety of rich user experiences in your ad. This allows users
to:
 Download an app or buy iTunes content from the iAd
 Save screen images to photo albums
 View in-line audio and video in a custom frame
 Save coupons, barcodes, recipes or branded wallpaper
 Find nearby stores and get in-depth information
 Share content via twitter without leaving the ad
Gain understanding beyond impressions.
iAd campaign reporting goes far beyond the standard measurements of exposure and clicks. You
get in-depth information throughout the course of your campaign, including average time spent,
pages viewed and unique visitor metrics.

20. We continually optimize your iAd targeting so that your ad performs for your goals throughout
your campaign. In addition, a complete wrap-up report provides key insights into user
engagement, performance and best practices based on overall network results. By understanding
user behavior, you can learn new things about your audience to hone your marketing strategy and
further inspire them with your story.
Standard Metrics
 Impressions
 Taps and tap-through-rate
 Unique visits
 Average time spent
 Views and views per visit
 Interactions (videos viewed, games played etc.)
 Conversions and downloads
How to apply iAd?
1. Register  Pay the down payment & Agreement
2. Submit Advertising media  Video & Image
3. Done  We processing your ads.

21. Conclusion
Apple has success to built lot of new innovation, like Mac as apple computer, MacBook as apple
portable computer, also ipod as portable media player. Apple market is all age, from student until
enterprise user, means that apple has lot of connection. Apple develop iOS4, which operating
system for iPhone & iPod Touch. They already sold more than 250.000.000 iPhone and iPod
Touch all over the world since 2007.
With more than 250.000 application for iPhone & iPod Touch, and more than 7.000.000.000.000
( 7 Billion ) application sold. And user usually spends around 30 minutes every day for one
application. So, we decide why we don’t put advertising on the application? With more than 7
billion application sold until today.
With the iAd, bring the advertising into iPhone & iPod Touch user, we categories into 20
different category, like business, social networking, news, entertainment, etc. and we will put
your advertising in your “right” category so you can “meet” the right person who have potential
to use / buy your company product.
iAd offering you, more than usual advertising, with iAd you can put interaction and emotion in
your advertising. Like web advertising they offering you interaction, and TV advertising will
offer you emotion. But iAd offer you both interaction and emotion in your advertising.
3 simple step for apply the iAd ( Register, Submit Ads, Done ) with 3 simple step, we hope user
can “easy” to join our advertising program. But for further information you can go to our website
at apple.com and contact us by mail.
Limitation for many advertising contain of dangerous code, porn, are not allowed to advertise at
iAd. For now (2010) iAd just available at US only but at 2011, iAd will expand at Japan,
Indonesia, Thailand, Malaysia, Singapore and more country on next year.
Our client today : Nissan, Dove Men & Care, JC Penny, We Rule, Audible.com, and AT&T

22. Our Client’s iAds:
AT&T
Showing AT&T customers how affordable it is to add someone to an existing Smartphone
Data Plan using interactive data visualization tools.
Audible.com
Introducing new users to the Audible.com brand and showing them, with Jon Stewart’s
help, that listening to a book can be even better than reading it.

23. Campbell’s Soup
Illustrating all of the high quality ingredients found in Campbell’s condensed soups, and
offering recipes that show what soup can do to transform a meal.
Dove Men + Care
Positioning Dove Men+Care as a brand for men who are comfortable in their own skin by
showcasing the journey top athletes take to achieve confidence and comfort.

24. JC Penny
Engaging teens to discover JCPenney as a destination for back-to-school must-have
styles at compelling prices.
Nissan
Driving awareness and consideration for the new 100 percent electric car by offering an
experience that is as intuitive, forward-thinking and exciting as the Nissan LEAF™ itself.

25. We Rule
Tapping an iAd for Developers banner brings the App Store experience right into the ad.
Users can learn about an app and download it immediately without leaving their current
application.
Until now, when we saw advertising on TV always like “distribution” for our favorite TV
program, and mostly we don’t like to “see” the advertising. But we as apple company
want make a new design of advertising that user will love it, not hate it. Because iAd
offer “freedom” for user to view the advertising if they like, and leave the advertising
whenever they want.