How Effective Will iAd Be For Mobile Marketers?

When Steve Jobs first announced the iAd platform back in April, the clever analysts at Juniper Research put up a blog post asking “Will iAd Generate iAdspend?”

Following yesterday’s somewhat glitch-ridden introduction of the iPhone 4, the answer appears to be yes. Steve Jobs told an enthralled audience that Apple had over $60 million in commitments for 2H 2010 from the likes of Nissan, Sears, JCPenney, GEICO, Target, Best Buy, GE and Unilever, as well as longtime partners Disney and AT&T. Those commitments represent 48% of mobile display ad spending the second half of the year, according to Apple (which clearly based its calculations on more optimistic projections than eMarketer’s, below).

Of course, we have to factor in the Apple effect. Combine a new, slicker and seemingly more capable iPhone with a revised OS and a new ad platform and you have the potential for a rising tide. Apple’s entrance into the mobile advertising market in such a high-profile fashion undeniably serves as a validation of the medium. But whether it will lift all mobile advertising—or just mobile display—remains to be seen.

The iAd examples Apple demonstrated yesterday certainly looked impressive, as they should given how high Steve Jobs has set the bar. The bar for performance has likewise been set high, commensurate with the cost of participating in the iAd program. The awareness Apple has generated about iAd, which transcends the marketing community at this point, should work in favor of iAd advertisers, who will also get to bask in Apple’s glow.

The novelty factor associated with the first round of iAd likely could contribute to high levels of consumer engagement. Wired magazine saw a huge boost in sales when its iPad app was released, thanks to the considerable hype associated with the app’s engaging, touch-friendly content. The same hype could be applied to engaging, touch-friendly iAds, which launch July 1.

The question, however, is whether Apple’s halo effect will last with the iAd platform. The proof ultimately lies in the effectiveness of the campaigns once they are in-market, not in the flashy demos.

(Image Credit: James Martin/CNET)