Sunday, January 17, 2010

Apple the slate and advertising

I tried over the last couple of weeks to put some pieces together…

1- SJ quote that Apple have millions of Credit card info in iTunes. SJ never say a quote for nothing. When he said something, he have something in the back of it’s mind.

2 - They tried to get adMod but got Quatro. I’m sure it’s not only to distribute advertising on the iPhone the usual way. If they get into a business it’s because they can bring something to it. They need peoples who understand the process, more then the actual process (the actual web/mobile advertising process). They won’t be just another ad company

3- They are makind deal with publisher. They want to offer more then just another ereader. They need to offer a way for the publisher to embrace digital format and create a new business model.

How can we put those pieces together?

Here is my take.

With the iSlate Apple will make deals with publishers for content. Apple is more and more about selling content. Publisher can then sell advertising the old way…. or they can have Apple help them create a new business model.

First : advertising that use geolocalisation to get specific audience a specific ad, as we see with Google Adwords. Apple could get some money out of it. So ad in a national newspaper could have regional advertising, that appear base on your IP/GPS when you download a newspaper. Small companies that can’t afford national newspaper now would. Only publishing PDF version will be lame. It,S the old way of thinking. Here Google have years of info on us, advantage to them. Apple could probably use a version of it’s iTunes Genius, to propose better advertising. They know what music you listen to, movies, tv show, and publication you have. Doing so they would only repeat what Google is doing.

Second, those advertiser sell products. Here Apple can offer something that Google can’t. What if by a simple touch on your slate/ iPhone you can buy a product right there with the “oneClick” process, using your iTunes accounts? Apple get again a share of the sale, publisher get better target ad and advertiser get an impulse sale. Apple take care of the back end as for iTunes, and keep a %, pay the credit card etc… Advantage Apple for those CC accounts. Your iTunes account is your new electronic wallet. The Oneclick process is own by Amazon, but Apple could improve on it in a way that Amazon have not done or think.

So you are reading the newspaper and there is a review for a book. Just below it, you have an ad from a local supplier that offer the book in either print or eFormat. Click enter the password. confirm the purchase with freight. The sale is done, the book is on it’s way. Apple know your name, address and CC info. No need to visit the web site.

Apple can then take this process to the web by getting other company use them, as the backend of the transaction. Click - password, payment is done, shipping info is send to the seller, your item is on the way.

Apple could change the way we relate to advertising, offer a new business model to the publisher, monetize the value of all those iTunes account, and become a replacement for PayPal….all in one.

So by getting into the slate business they can get increase the business of payment for them, and become a bigger distributor of content. All business that should bring more $$$ to the bottom line, and lock people into the iTune ecosystem.


Just some crazy ideas?. What do you think?

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