Rumor: Apple’s Mobile Devices May Soon Get Full-Screen Video Ads

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Apple (NASDAQ:AAPL) may soon be launching mobile video advertisements that automatically play full-screen via apps on iPhones and iPads, reports advertising industry news site AdAge. According to AdAge’s insider sources, the video “interstitials” will likely pop up after the completion of a game level or during other similar app intervals. Per the sources, Apple may sell the new video ads through its recently unveiled ad exchange.

The move will likely be welcomed by investors that have long called for Apple to expand its ad offerings beyond mobile banners. Although Apple is one of the foremost hardware and software vendors in the market, the Cupertino-based company has yet to significantly monetize its users through mobile advertisements. According to data from market research firm IDC, Apple made $125 million from mobile advertising sales in 2012. Meanwhile, Google (NASDAQ:GOOG) pulled in $243 million in sales through its lucrative AdMob network. EMarketer recently forecast that Google and Facebook (NASDAQ:FB) will take the lion’s share of U.S. mobile ad revenues this year with a 49.2 percent share and 15.2 percent share of net mobile ad revenue, respectively.

Although Apple investors may applaud the video iAd initiative, Apple users may be less enthralled with ads that may potentially interrupt their in-app activities. Apple has a vested interest in maintaining the high quality of its premium ecosystem and it will have to walk a fine line between providing advertisers with an effective service while maintaining the overall quality of the mobile user’s experience.  However, like the banner ads that it currently sells through its iAd network, Apple is likely to maintain some degree of control over the design and relevancy of any full-screen video advertisements that it displays.

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