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Adobe and Apple are in the middle of a PR skirmish that is starting to heat up. Although his displeasure with Flash has been hinted at for some time, in April Steve Jobs finally trashed Adobe and Flash publically in an open letter. Jobs states that Flash did well during the “PC era” but we are now in the “mobile era” with low power devices and touch interfaces that don’t work with Flash. Also, and most importantly, Flash is a closed system and does not support open web standards. This is no surprise that Jobs would not support Flash because most of the portable products he sells do not support it either.

I understand why many developers try to steer away from Flash; it requires more system resources slowing down the system and is not supported by the W3C. However, it gives developers more options and is very widely used across the Internet, mostly for video and interactive content.

Adobe has responded to Jobs’s Flash bashing with an interesting strategy, to kill the opposition with kindness. In their own open letter, they started an opposing campaign based on Love of all things. They have also followed up with an ad in the Business section of the LATimes with the copy:

We love creativity

We love innovation

We love apps

We love the web

We love Flash

We love our 3 million developers

We love healthy competition

We love touch screens

We love our Open Screen Project partners

We love HTML5

We love authoring code only once

We love all devices

We love all platforms

What we don’t love is anybody taking away your freedom to choose what you create, how you create it, and what you experience on the web

Adobe has cleverly fired back at Jobs pointing out the hypocrisy of his claims. Jobs fully supports open web standards as long as they only apply to his competitors and not his own software platform. He claims that he does not support Flash because he refuses to put his products at the mercy of a third party but that is exactly what Apple demands of its iPhone app developers. He is accusing Adobe of the exact same things Apple is guilty of. This is why I feel that open web standards is not the issue at all; I believe the main reason Jobs does not support Flash is because it enables free streaming video and games online. If Apple products supported Flash on their portable devices, people would have access to media without having to spend money in the App store and iTunes store. Many of Jobs’s negative claims about Flash in his open letter are blown out of proportion or completely unfounded (see security and battery-life for example). And while is true that HTML5 is the future and will likely replace Flash in most applications, its still in its infancy and it is very unlikely it will be recommended as standard for at least another few years, until then Flash is still completely necessary. The fact is that Apple would have to compete with Flash enabled media on its devices and Jobs does not want the competition, this is not about open web standards and healthy competition, it is the opposite of that. In a perfect world, users could decide whether or not they want to use flash on their portable devices similar to how we can on computers.

While I am impressed by Adobe’s clever response and resulting campaign, I feel that this escalating feud between the companies is completely unnecessary and both sides will lose in the long run. Apple and Adobe have had a long-standing relationship that has greatly benefited both parties. At Chado, we love both brands and use Adobe software on Apple products everyday. Both companies are firmly grounded in creative industries and both can attribute their initial successes to their products being used together in this industry. In fact, the only reason I use a MacBook is because how well it supports Adobe products. Whether they like it or not, both companies are dependent upon each other to some degree; without Adobe’s superior creative products there would be very little demand for professional Mac hardware. Also, Apple would not be the brand it is today without the praise and exposure it received from creative professionals. With the growing popularity of their portable devices, Apple seems to have lost focus on where they came from and what their true strengths are. If this battle continues there will be no winner. Both companies would greatly benefit if they continued to work together as allies rather than going on the offensive as enemies.

Yesterday, along with the iPhone OS 4.0, Steve Jobs introduced iAd, Apple’s own mobile advertising platform that according to Apple, “combines the emotion of TV ads with the interactivity of web ads”. This new platform, that will directly compete with Google’s new mobile ad platform, enables users to view fun, interactive in-app advertisements that unlike current ads do not require the user to go into a separate browser to view content. The average iPhone user spends an estimated 30 minutes inside apps everyday so if an ad is displayed every three minutes there would be over one billion ad impressions everyday on all of Apple’s 100 million devices in use. The new ads will be different than traditional mobile ads. They will feature interactive and video content within the ad enabling instant video playback, sound clips, and even games. For example, a Nike ad lets users watch videos, design their own custom shoe, or find a store all within the app. Apple plans to sell and host the ads while giving developers 60% of the revenue. Since Apple devices do not support Flash media all interactive ads will be done through HTML5. The ads will also be targeted towards specific users based on the content in their app.

I think iAd is a great idea for Apple to release now for a number of reasons. First it keeps the actual prices of the apps down while allowing app developers to get paid. As the developers get paid more for their apps they are more likely to develop better apps or provide better support for current apps. Also it gives magazines and other publications a good reason to move to the iPad. They make their money and run their business from advertising sales and these specialty apps give them an incentive to transition to their product. Lastly, this new platform will be very profitable for Apple. It will be very interesting to see how the new ads evolve, how they are received by users, and what impact they have on the industry.

It was just three years ago when Eric Schmidt, the CEO of Google took the stage with Steve Jobs to help unveil the revolutionary iPhone at the annual MacWorld Expo. The two technology giants worked together to enable Google services to the iPhone. Their relationship flourished during development and they appeared to have a bright future together even joking that they should merge and call the company AppleGoo. Schmidt was even invited to serve on Apple’s board.

Today, it is a much different story. These once very close companies are now bitter rivals battling for dominance over the mobile computing market. They have been fighting over the last six months over patents, applications, and lawsuits to try to gain an edge on this emerging market. Early this month, Apple sued HTC, a phone manufacturer that make mobile devices that run Google’s Android OS claiming they violate iPhone patents. Google is pushing for smartphones to have an open, nonproprietary platform where users can download anyone’s app to use on their device. Apple, on the other hand, wants the market to be tightly controlled and apps can only be downloaded through their own App store. Even further, Jobs claims that Google stole from them by releasing a similar product. Jobs was quoted saying “We did not enter the search business. They entered the phone business” believing that Google wants to kill the iPhone. Although Google claims that some Android prototypes predate the iPhone they continue to battle over features and functions like the multi-touch control. Then the already fierce battle heated up when Verizon started running ads declaring Android’s superiority over Apple with the ability to run multiple applications at once and took shots at AT&T’s poor network performance.

In July, when Google tried to include Google Voice on the iPhone and was immediately denied by Apple, Schmidt stepped down from the board and the acquisition battle ensued.  Apple made a bid to acquire AdMob, a mobile advertising company, but was scooped up by Google. Apple responded by quickly acquiring Quattro Wireless, AdMob’s top rival. The same day Google introduced the Nexus One with many similar features to the iPhone. Google is also developing a set top box that will rival Apple TV. There is now speculation that Apple’s next move against Google could be to make Microsoft’s Bing the preferred search engine on the iPad and iPhone. Even bigger, the newest rumor is Apple developing their own mobile advertising platform taking the battle to a whole new level.

The new service, rumored to be called iAd, is said to debut April 7^th. This move isn’t surprising with their acquisition of Quattro and discouraging App store developers from creating apps using location-based information for mobile advertising, most likely because they plan to do it themselves. Jobs has also been describing iAd as their next revolutionary service. It seems that Apple plans to take over mobile advertising much like they have digital music. Now, with Google’s recent patent and their acquisition of AdMob both sides have a strong foothold and the battle for the mobile advertising has begun.

Regardless of the outcome, this fight for market dominance will undoubtedly spawn some revolutionary technology, continue the debate of open source vs. tightly controlled technology, and determine the future of mobile technology and possibly advertising.

After several months of speculation and rumors Apple has finally launched revealed their newest product, the iPad. For years tech blogs have been buzzing about a new Apple tablet to follow up their old tablet product The Newton and it has finally arrived.  What is it exactly? What does it do? What doesn’t it do? And how can it change the face of advertising?

The iPad can be best described as a convergence between the iPhone and a Macbook, fusing together specifications from both product lines. Initially it looks like nothing more than a giant iPhone, utilizing an improved operating system based on the iPhone OS. It also has about the same thickness measured at a half inch. The screen is slightly smaller than a Macbook’s with 9.7 diagonal inches of screen and has 1024×768 resolution. Apple has reported that the battery can last about ten hours on constant use with a one-month standby rating! This would make the iPad an excellent travel companion. Models will support Wi-Fi and some will also support 3G. Unfortunately, it seems that AT&T may be the only provider at this point, which is bad news for their already terrible 3G coverage. Navigating the system is done by hand utilizing a touch screen similar to the iPhone. The touch keyboard should be a bit easier to use than the iPhone, as it is nearly life size and can be typed on using fingers instead of just thumbs. It would still be awkward to type on but a definite improvement over the iPhone. By taking technologies from the iPhone they are ensuring that the new product will have a small learning curve and will be easily adopted by current iPhone users.

The interface seems pretty good, but what about media and apps? The tablet handles various types of media like music, pictures and video, supporting 720p HD playback using iTunes as the default player. The iTunes software for the tablet is a redesigned hybrid between the mobile iPod interface and the full iTunes program including features from both for improved functionality. Videos can also be enjoyed using a YouTube app similar to the iPhone’s. Speaking of apps, the iPad will have full support of all iPhone apps as well as some new apps made specifically for the iPad. Its also been confirmed that iPhone users can transfer their apps to the iPad so they don’t have to buy them again.

Apple also plans to use their iPad to compete directly with Amazon’s Kindle. With the iPad’s release they will enter the eBook market with a new program appropriately named iBooks. They have also designed a new iWork suite specifically for the tablet including new versions of Keynote, Pages, and Numbers with new interfaces designed for the touch screen.

As great as this new product seems, there are a few things that I would want to see before I would drop over $600 on a tablet. My biggest problem is it does not support multitasking. You can’t listen to music while writing in a word processor or open twitter while browsing the internet. Most professionals wouldn’t even consider using the iPad as an alternative to their computer without the ability to multitask. Another obvious improvement would be adding a camera. The current design doesn’t include a camera so there is no possibility for taking pictures or using iChat. Also, this makes the incorporation of augmented reality apps impossible. The other glaring problem is it does not support Flash making it unable to view streaming video directly from web sites while leaving wide barren gaps in web pages you are viewing. When most sites utilize flash and one of the main selling points of the product is using it to surf the web, it is paramount that Flash is supported. Lastly, the name; iPad. Since its introduction this morning there have been quite a few allusions made on tech blogs comparing the tablet’s name to feminine hygiene products. While my mind doesn’t immediately go there, I think they could have come up with something a little better. Just think of how difficult it’s going to be differentiating between an iPad and an iPod in Boston.

This new product has the potential of being awesome; it combines the functionality and interface of the iPhone with more programs like iWork and their new iBooks software. The new iWork software would make this perfect for giving impromptu presentations using Keynote to clients and a few improvements like Flash support, an HDMI port, and widescreen would make it perfect for media. Problems aside, it is sure to sell out and open the door to tablet computing.

Now that we have a firm understanding of what the iPad is and what it can do, how can it be used for advertising? With the increased screen size and potential for media viewing plus increased functionality with the touch screen and internet connectivity there is great potential to improve the mobile advertising/interactive advertising experience.

With 3G connectivity, the iPad is always aware of your location so location based ads in real time are a definite possibility. Also, with the larger screen, there will be increased media consumption on the iPad potentially using its technology to introduce a new medium for interactive advertising. The iTunes store could offer media specifically made to view on the iPad that could utilize the touch screen to make movies and shows more interactive for the viewer. This could enable the user to touch the screen and link to a product being shown in the media or directly answer a call to action from a mobile ad. With the ability to literally touch what you are viewing, branded apps have the capability of being more interactive. The iPad is also expected to improve the gaming experience of Apple products with its improved screen and functionality so in-game advertising could be applied to game apps. Lastly, the new iBook capabilities could reinvigorate traditional print ads. Newspaper and magazine ads could take back their audience when the content is viewed through an iPad. Also, while reading through and viewing an ad the user would now have the capability to touch the ad and link directly to the offer.

To conclude, the iPad may not be perfect but it opens up seemingly limitless possibilities for advertising that have never been realized before. With the potential for highly interactive ads, direct connectivity, and the possible re-emergence of newspaper ads through iBook, the iPad could become the next great medium for advertising.

The iPad tablet will ship in 60 days to America and only the Wi-FI models will be available internationally.