Since when does ownership of a mobile device entitle the manufacturer to broadcast third party ads to your service plan? Has something changed radically in the way technology handles multimedia that users can block out advertisements if they don't want to see it? And, if that isn't the case and this is rolled out to everyone who owns an iPhone or i-device, who pays for the additional bandwidth these ads are going to suck up? Obviously, the end-user if they don't have an unlimited bandwidth plan for their mobile device.
The revenue model sounds great for Apple with its very high barrier to entry for those who want to advertise on the exclusive and closed system iAd network. 6.4 million iPhone subscribers in the US isn't paltry. It may not make the most sense or make the best use of online advertising budgets right now; but in time it could grow from being a mere goldfish to an invasive carp species in a few more years. This is just one channel in Apple's distribution network for content that leapfrogs beyond how traditional media is served up.
End-users already pay subscription fees for bandwidth for their mobile device, they are now (or soon will be) at the mercy of ad serving on a device that used to offer a more private space.
Where should marketers draw the line when it comes to exclusive ad networks?
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Number of iPhone subscribers, 07/2009
