Commentary

iAd: All The Brands Are Doin' It, For Now

iAd/iPhone 4

In the wake of the media blitz surrounding the iPhone 4 unveiling, a closer look at the initial list of iAd advertisers shows an impressive range of consumer categories. That major brands want to associate themselves with Apple as a brand synonymous with innovation isn't surprising. Neither is getting in on a product launch drawing global media attention.

Still, Apple has managed to draw a wide cross-section of advertisers from Target to Disney to Chanel to Campbell Soup. If Apple can sustain interest from such a diverse spectrum of brands it bodes well for iAd. There was a pronounced cluster of big-box retailers, which along with Target, included Best Buy, JCPenney and Sears.

That suggests these companies want to take advantage of the e-commerce opportunities offered through the iAd, allowing people to buy electronics, household items or clothing directly through the ad unit. But instead of typical direct marketing techniques, purchase options are likely to be presented within more immersive creative executions than typical direct marketing ads.

By contrast, an advertiser like Chanel probably has little interest in promoting direct sales via an iAd, focusing instead on the format's rich media elements for pure brand-building. The company will assume the affluent-skewing iPhone users are generally well matched to its high-end products.

The group of "presenting" iAd advertisers also featured a cluster of insurance companies: Liberty Mutual Group, State Farm and Geico. As a segment, insurance advertisers aren't usually associated with experimental, cutting edge advertising. (Although State Farm's sponsorship of the OK Go's "This Too Shall Pass" viral video belies the industry's conservative image.)

Even so, jumping on the iAd bandwagon shows even traditionally less adventurous advertisers are comfortable plunging into a new ad format, knowing Apple is involved. For Liberty Mutual, for instance, the iAd buy signal's its first major push into mobile advertising.

The iAd platform also represents Apple's first plunge into mobile advertising. So big brands are placing a lot of faith-and money--in the company's storied ability to marry technology and art in products with mass appeal.

"We can see [Apple] is very well prepared and they're geniuses as relates to creativity and design so we're pretty comfortable with their help building ads," said Babs Rangaiah, Unilever's vice president of global communications planning, who engineered the company's iAd agreement.

Dove for Men will be the first in a series of brands the consumer products giant plans to run ads on the new platform starting July 1. But Phuc Truong, who leads the Mobext, the mobile arm of Havas Digital, and is working with Sears on its iAd rollout, acknowledged there will be learning along the way as Apple and agencies get down to building campaigns. "It was great to do the [iAd] deal. "Now comes the hard part."

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