New Full-Screen Apple Video Units Point to One Future for Mobile Ads

When former Apple CEO Steve Jobs discussed mobile advertising and iAd he often talked about combining "the emotion of TV ads with the interactivity of web ads." That call to arms benefitted the entire mobile industry and forced ad networks and platform providers to "up their game" -- temporarily. 

Sadly, that advance hasn't continued. Amid all the talk of exchanges, enhanced targeting and programmatic media, there has been little innovation with mobile ad creative. Most mobile ad campaigns are at best weak or perfunctory. There are some isolated exceptions.

The future of mobile search advertising seems to be relatively stable and relatively predictable: dominated by Google and mostly text based. On the display side, however, there are a number of trends taking shape. 

One strand involves "native" or "stream ads," which are represented by Yahoo, Twitter, Facebook and several others. (Both Twitter and Facebook gain more ad revenue from mobile than the PC). Programmatic is gaining significant momentum in mobile as well. Yet that has little or nothing to do with ad creative. 

Another major trend is video. Video is interesting because it permits sophisticated ad creative and enables marketers not to have to generate new units for mobile campaigns. Brand imagery and messaging can also be more effectively conveyed via video than static display or even rich media. A video ad simply needs to be right-sized to fit the screen or sometimes cut in length. 

Mobile distribution of video ads requires less thinking and less work for marketers and agencies. It now appears that Apple is planning to give mobile video ads a new boost with the introduction of new full-screen in-app video ad units. 

AdAge is reporting that Apple is about to "roll out new video iAds this year that will automatically play full-screen within iPhone and iPad apps, according to people with knowledge of Apple's plans." These new video ads are being described as "interstitials," which means they'll come between clicks and content or launch before content. They'll be larger and more effective provided they're not used too often or too disruptive of the user experience. 

AdAge reports that they're being sold through Apple's newly launched but low-profile ad exchange.k