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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.

I know the technology in the above example isn’t directly applied to advertising (yet), but I think it serves as a great example of how constant innovation is necessary for any industry.

Film has been rapidly evolving with new technologies and techniques like digital video, high definition, IMAX, and 3D to make the viewer’s experience as realistic as possible and engage them to connect with the content. This movie has taken innovation a step further by breaking the “fourth wall” and engaging the viewers directly. As the hype for this movie builds it will be interesting to see its effect on future films. This new technology could potentially change the landscape of movies and how they are experienced in the theater much like emerging 3D technology has with movies like Up and Avatar. Now audiences expect to be engaged and the only way to deliver is through innovation to stay ahead of expectations.

Although they are different industries, this example of evolving technologies and increased interaction parallel the changes in the advertising industry over the past decade. Brands that have embraced innovation and engaged consumers through channels like social media have thrived while late adopters are struggling to catch up. As social media marketing continues to grow and we discover new ways to effectively track returns it has become a crucial part of any digital marketing strategy. As companies like Google reinvent the way data is collected and shared it will open up exciting new frontiers in marketing that simply must be embraced. This is why constant innovation is so important for industry growth and must be embraced for survival.