The iPhone 5 is the “most beautiful consumer device we’ve ever made”, said Philip Schiller, senior vice president of worldwide marketing for Apple, when the team launched sixth generation iPhone yesterday.
The new iPhone is thinner and lighter than ever with a completely renovated design, a new stunning 4-inch Retina display, A6 chip designed by Apple for incredibly fast performance, ultra-fast wireless technology (4G LTE), longer battery life and their most advanced mobile operating system, iOS 6.
Nevertheless, Apple’s newest iPhone release was covered with mixed reviews. Some analytics and industry experts said the new addition is missing the “wow” factor. One interesting question is what effect all these new features will have on the Apple’s mobile advertising?
Bigger screen – better for marketers
The new Retina 4-inch display offers more pixels than the iPhone 4S, making the screen even more fabulous. With the current 3.5 inch screen, Apple was still able to capture 31 percent of all mobile ad impressions in the second quarter, with the iPhone maintaining its top spot in the top 20 devices with a 16 percent share, according to the latest report from Millennial Media.
The bigger screen on iPhone will now provide even more opportunity for marketers, and at the same time developers will get additional prospect to incorporate creative ads with the extra resolution.
“The additional height of the larger screen size now leaves brands and developers wondering how to leverage the space and also how to incorporate the extra resolution into their creative ads,” says Krishna Subramanian, CMO of Velti.
“Ultimately, the larger screen size gives advertisers more real-estate which will lead to more engaging and interactive experiences for consumers. The new A6 chip also increases graphics speed which will provide more possibilities for rich media.”
A recent study by Greystripe found that full-screen ads with bigger mobile screens are five times more effective than banner ads.
“Our studies have shown that full-screen ads are five times more effective than banner ads and expanding the creative canvas on the iPhone 5 is a big advantage to marketers who are looking to deliver an engaging experience to their target customers,” said Kurt Hawks, general manager of Greystripe, San Francisco.
In addition, the extra screen is also a bonus for landing sites and pages that links campaigns to various apps and will allow brands to really take their offering to the next level and more deeply engage through mobile.
“Rich media on mobile has grown significantly through 2012 and we have seen a recent surge in mobile advertising innovation. Today’s news is great for the mobile ad industry, the iPhone5’s richer display, ability to display larger apps and faster operating speed will allow brands to really take their offering to the next level and more deeply engage through mobile,” says Anne Frisbie, VP & MD, North America, InMobi.
“Apple is the leading device manufacturer in the US and its technology developments drive serious innovation across the mobile ad market. We expect rich media mobile advertising to become even more immersive and broadly adopted in the coming 12 months.”
Ultra-Fast 4G LTE – More Video Marketing
Apple’s iPhone 5 supports ultra-fast wireless standards, including 4G LTE and DC-HSDPA, to browse, download and transmit streaming content even faster.
On the one hand, the iPhone is supported by its market share, which encourages investors. On the other hand, the success of an advertisement to be linked to the richness of its content and thus requires a device capable of displaying this content and create rich interactivity. The inclusion of 4G LTE means marketers will now be able to deliver richer content experiences to users.
“With the iPhone 5’s LTE connectivity, the new device will allow retailers to provide shoppers with more and richer content, such as mobile Web video, while they are in the store, not only enhancing their singular shopping experience, but their overall experience with the brand,” said Alex Campbell, co-founder and chief innovation office of Vibes, Chicago, IL.
Combined with better speed, the iPhone 5 could also lead to increased use of mobile web, more apps, and other types of mobile media capabilities.
Another big announcement made by Apple at the launch is new pricing for older iPhone models. And even if the new iPhone has rich new features, Apple has decided to go with the previous price models.
The new pricing model has the potential for the company to attract even more consumers and expand the audience of marketers advertising on Apple’s iAd platform.
“There are still are going to be a lot of people who will take the two-year old device for free over another device because they want the Apple experience,” eMarketer’s Mr. Elkin said. “This will put a lot more devices in the market. The more iOS devices there are out there, the more of a value proposition for Apple advertising there is.”