Apple to announce iAd / AdKit 'mobile advertising system' on April 7th?
By Richard Lai 
posted March 28th 2010 1:29AM
posted March 28th 2010 1:29AM
Really, we're not surprised to hear this may be coming, as a tipster just pinged us with info that an "AdKit" reference has shown up in a special file on Apple's public "Phobos" server. This file, which is called StoreBag, provides a public XML interface into iTunes. That interface describes how applications and web browsers can "call home" to either retrieve iTunes information pages or to request that iTunes jump to a given product listing.
What you see here is a key-value pair from that file. The URL string that follows after the "adkit-product-url" key suggests that Apple is about to introduce a way to link ads with product URLs. How will this URL work exactly? It's hard to say without any further details, which are regrettably sparse on the ground, but it suggests that ad sourced product links can be used in a similar way to affiliate-driven links.
Not much else is known about Apple's first venture into the ad business at this stage, but Steve Jobs has allegedly told some executives that this will be "revolutionary" and "our next big thing." Frankly, we're starting to get a little concerned with just how often the folks in Cupertino are bandying around the word "revolutionary" -- but we'll hold our judgments until after this announcement happens (if it happens at all).<key>adkit-product-url</key>
<string>http://ax.itunes.apple.com/WebObjects/MZStore.woa/wa/adkitProduct</string>
I don't want to put up with advertisements and apple tax in the same product! One or the other, Apple, you chose or let me!
@juanvaldez
Dear Moron,
You know why TV shows are 'free'? Cuz of those...ad things.
If Apple can slash prices of their products with ads, they could win some serious converts. The trick is doing it and now coming out looking like a 3 dollar who--- er... not looking like Dell.
@Wesscoast Dear Nice Gentleman,
There is a reason for the saying "there is no free lunch." With TV that you watch through a cable company, you pay twice, once for access and once with advertisements. Yes, there is free OTA television, great, grand. I wont count it the same with the internet, because you pay to access many things with the internet and the penetration rates haven't noticeably changed since the Hulus of the world came into play, add to that fact that Hulu and the like want to make money so don't count that egg before it's hatched.
To make such a comment, while trying to "educate" me on things I understand well, only makes you look bad. Additionally, people want pricing tiers these days, which is why there are so many ad-free and premium access ways to access all things. Again, I'm not 100% against an Apple tax, I'm just saying if I pay it that better be the only way I pay.
Thanks for the tease, I thought you might teach me something or put me in my place for a second.
@InternetExplorer
Obviously that means Apple uses Ads to subsidize their offerings. I was more offended by the original poster's assumption that, somehow, Mac OS would be covered in ads and the prices wouldn't change. (hence the implicit increase in the overall revenue for Apple)
Actually this iAd thing (if its not an April Fools joke) will just help publishers bring down prices of magazines/newspapers on the iPad.
The idea of Apple somehow implementing ADS (ala Google) into Mac OS, to bring down Mac prices is.. like I said, way too Red Light District for Cupertino.
@HighestRanked2
Dear Unable to read,
I said I can deal with either, not both, never did I say there would be both. Also, what is on paper, doesn't spell doom, though I'm not going to be optimistic.
Cheers and good luck with future comprehension.
@HighestRanked2
Now, separately, let me tell you how economics works. See, there is this thing, called price elasticity of goods. Fortunately for Apple and their stock holders, they have managed to make their curve tilt more in their favor than most brands. Therefore, with my knowledge of brands and economics means that this device in Apple's hands is more of a "tax" on consumers than any other competitor in this marketplace, due to their strong brand loyalty and general name recognition in the mobile space.
This game is about money, they get theirs better than any technology hardware manufacturer, while this will be good for some segment of consumers, it will go very far for Apple. Go get 'em Apple.
@Atkins I appreciate the constructive question, I'm not here to start a flame war. Since the first question has been answered in the past by countless people and I'm not sure it'll be worth the character count/reading to restate, I'm more tempted to answer the 2nd question, even though I don't believe I should have much, if any, authority with my opinion.
I do like your thought on how it will be used, I think that is entirely possible, and if that is that I think that can actually great for a few reasons. And I'll take it back to the purchase of Quattro, if they made this acquisition to give developers an alternative revenue stream that's great. It will attract more developers, attract more free options for apps, and just make the app store more robust. As long as Apple is committed to the App store, which they are 100%, the more robust the App store is the better it is for the consumers who are within the ecosystem.
My worry is much more along the line of Apple's patent on OS advertising and "disabling of one or more functions" during the playing of said advertisements. Since user experience is of utmost importance to them, I don't expect it to start off intrusive, especially before they don't hit critical mass on sales.
It is Apple's brand that scares me though. Once they have people investing so much into this ecosystem, and so much brand loyalty (assuming it continues to grow, or at least remain stable though stable is unlikely, it'll rise or fall over the coming 24 months), they will be able to get away with even more than they have in the past. Let's be clear, Apple is here to dominate the mobile environment in both market share and profit.
If they can get away with putting advertisements into the OS, the web browser, anything, they will be very tempted and have more than normal leeway to do so. I love Apple products, though I don't own many, I just want other companies to be about as equal because then Apple has to look over their shoulder and make sure they compete and differentiate themselves. As long as they dominate they tend to neglect things (camera, video, sound quality...) like they did in the iPod heydays.
@HighestRanked2, I'm done with the flame war, ok, just a bit more:
"For one, we can see where it will NOT go. The revenue stream model for paid apps is robust and self-maintaining therefore ads make no sense there."
Every segment of business that has had growth and positive revenue streams, has always looked to expand both, so don't exclude paid apps, though I would bet that it'd be upto the developers. Fine. As a matter of fact, to so close-mindedly dismiss such a notion means that your limiting the app store's and developers potential. Don't dismiss the paid app game changing, it just makes you sound ignorant.
Because something is profitable and self-sustaining DOES NOT mean that it will, or should, be stagnant and not looking to expand upon profitability. Anything that will attract more developers or have them devote more of their time there has potential and should not be dismissed.
@Atkins Yes, 2 versions was also my hope when I read that. Actually, I was also a little pleased to see the idea patented. If Apple isn't interested in licensing it, though I assume they would license it out, then that limits where it'd be found. If it'd be abused, then Apple can keep that patent and I'll be happy. If it'll allow me a choice between 2 different OS price tiers I'd wait for reviews and hope there was a great "lock" of how it'd operate and how often so I wouldn't get screwed by it down the line.
@juanvaldez
I can't really see apple doing this to make an os free in reality as you pay for it in the hardware cost. Do you think they will reduce the price of that next macbook pro because it now has ads in it?
Sure they may let you update to the next version of osx for free but it is very easy to include new hardware reliant options that make this not as appealing as buying new current hardware (with the current os cost included).
iphones already receive free os version updates so nothing new there. iphone/ipad hardware cost reduced? doubtful, maybe more subsidised with a share of ad revenue going to carrier.
ipad hardware price will probably drop before the end of the year anyway (my belief anyway).
This feels much more to be a way to build ad integration into iphone/ipad sdk for developers directly without the need to use a third party (ie admob). they have their own accounting system linked with your app sales account. they can negotiate deals with ad agencies to screw with googles revenue stream (this is the big point I think) much the same way they did with publishers pricing and amazons prices. Apple can be very free with their cut since whatever they take is icing on the cake for them while cutting into googles prime business.
@juanvaldez
Like i said before Apple needs to split in two. Bring back Apple Computer to concentrate on Hardware and Mac software and Lala for selling Music,Videos, Books and maybe Ads.
Jobs can focus on Lala.
@juanvaldez
This will change the market for the better.
@juanvaldez
iPhones and android phones cost the same....what tax are you talking about?
@Wesscoast
You were 'offended'? Like really, truly?
@jaffreywali I'm not sure how you are qualifying price here, but they are not the same. Should you chose, you can find Android phones that are the same price yes, but surely since Android phones have different prices they can't all be priced the same as Apple. 1 way you find the "tax", again hyperbole, in the phone is because it costs just as much as it did 9 months ago, total Apple style, I'm happy for them that they can get away with it. Also, please pick out Android phones that cost $599 or $699 to get contract free, they come with things like better specs and truly unlocked. These prices were more palatable 9 months ago, when the mobile space was much less competitive.
Part of the Apple tax isn't even the money that is paid, it is also some things like locked down hardware that doesn't allow a change of carriers or app purchase outside it's ecosystem.
@juanvaldez. it sounds to me like they are setting up their own 'google adsense' or 'linkshare' program. one that could work with websites or even Apps. first step after it is set up would be to cut adsense from iweb i'm sure. perhaps a Summer/fall ilife '10 is coming with this change and html5 support options. Maybe even some kind of iweb lite for blogging on the go.
I think they meant to call it iUd, sticking to their current naming scheme.
@Evan Actually, it was meant to be iFad. =P.
@Evan
Well, doesn't matter what they call it...
iWon'tBeWatching.
iAd, what an awkward name to say. I guess apple wants to go to war with google. I'm rooting for Google, only because they are my overlords and if I suggest anything to the contrary, my nexus one will stab my in the heart.
So you pay 2-3 times more than you would buying a non-apple product, then they bombard you with ads, too? Bing that.
@Atkins
Why should we stop talking about the price? You can spec out an ASUS, HP, Lenovo or even Sony laptop for sub $1k with a core i3/i5 and dedicated graphics. That makes the Mac Book Pro look a tad on the expensive side to say the least.
@HighestRanked2 Even iHater Mental Cripple hopes you are correct.
@sweet greggo You guys are too easy.
I hope its part of a 4.0 announcement.
@sweet greggo Well, you seem to know how it will be implemented, I am impressed. And, please, stop with the nonsense about the prices.
iPad => iAd... Next up is iD?
iD think so.
@ashvala
No, next up is April Fools Day
It ain't no nonsense, check out a PC proce and then compare. Remeber too that if you buy a PC, you will also be buying a far, far superior Operating System.
I dont want this at all, but the best case scenario is that this is for free apps (or free versions of paid apps) which is just how it works on android
the thing with android is, ad support is optional for free apps. im betting apple will make this a requirement for free apps and make them extra annoying so that we'll be aggravated into giving them money.
Good thing i dont own any apple products.
and the next apple device i buy will probably be the keyboard, which is still safe
Literally the one official reason Apple wants HTML5 instead of flash is because they say that they want to protect consumers from pesky internet ads. Apparently, the real reason isn't because they dislike Adobe, not because they want people to use only the App store for games, but because they want to control all the ads you see too.
And you thought China was oppressive.
@Dante of the Inferno
It's cuz Flash crashes.
Where have you been?
@Wesscoast Well, it's an Adobe product (at least through acquisition). That means it became bloated as hell and they care more about adding new bling instead of fixing existing problems.
Nowadays the first things that come to mind when hearing "bloated", "sluggish" and "unstable" are Flash, PDF and of course iTunes' Windows client.
A competitor to Google's ad-dominance even in non-search specific markets is a good thing... and this is coming from someone who generally advocates google.
Google, Microsoft, Apple, Yahoo --- we need a bunch of players to keep this market helathy, competitive and innovative.
@buoy
Yes, yes, because if there's one thing the consumer craves, it's more adware.
@Dante of the Inferno
lol
Jobs seem to use the word "revolutionary" for all of their pre-product marketing. I think he needs a thesaurus
Jobs doesn't use revolutionary for everything, only the stuff that didnt take much thought at all.
downloadable applications?
really big iPod touch?
widescreen iMac?
mobile ads?
OMG IM A FUCKING GENIUS
@Delta Well, this is only because Apple hadn't changed the processors in the Macbooks, which will happen quite soon I am sure.
While I do agree that you will pay more for a similarly specced machine from Apple, it won't be 2 or 3 times more expensive for sure.
@Atkins hadn't or hasn't ?
@shithead Jobs hardly uses this word for every of their products. And it basically means a "radical change". I think the iphone succeeded in this. Now let's give the iPad some time.
iSpam for the overpriced iDevice you just bought
Just what the world needed. Even more ads.
@MikeZ
Makes you want to run into Eric the Moleman's hairy little arms...
"Oh.. my god... you're.. covered in Ads too!!"
@Wesscoast OMG a guy who gives away services that were in many cases paid before he came along. Reading all your posts on this column, all I can ask is "Apple employee or fanboy?" Either way, if people are against this we can make a voice and we don't need either of the aforementioned type of Apple supporters to try to placate us.
@juanvaldez
They're still paid, just paid by the advertisers. And in many cases you're getting Beta products.
I'm a huge Apple fan, of course. And I look forward to the Technorati's extreme disappointment when they realize that iAd is just Apple's ad-revenue infrastructure for the iPad. Google will own the internet, and Apple will own these digital publications.
@Wesscoast Convenient, you say "TV is free" and then say Google services are paid in the next post. You sound like a politician.
@juanvaldez
I put 'free' in quote marks to show that i was being ironic/sarcastic.
Of course its not free. *sigh. Paid by ... advertisers. Get it?
@Dante of the Inferno What's with the comparison with China? You are not born in "Apple's world."