Apple's iAds twice as effective as TV ads

By Drew Heatley

Fri Feb 4 2011, 00:00 AM

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Apple's iAds are more than twice as effective as TV ads, according to an Apple-funded study carried out by Nielsen. The research was carried out with the cooperation of an early iAd adopter, the Campbell Soup Company, claims that users were more than twice as likely to remember an ad for Campbell's soup on their iPhone then if they had viewed it on TV. The report says the users also remembered the Campbell's brand name up to five times more and were three times more likely to remember the ad's message via the iPhone.

The study interviewed TV and mobile audiences separately and Nielsen claims the latter group were four times more likely to purchase Cambell's soup as a result of the mobile. Campbell’s global ad director Jennifer Gordon would not disclose the company’s budget for its iAd campaign but concedes it is a "sizable investment", according to AdAge. However, out of the 53m ad impressions, just 1% clicked through and spent time on the ad.

The report results do appear generally positive for Apple, but it is worth bearing in mind that it only targets one case study. Apple's financing of the study also has a bearing on the ultimate value of the research. More broadly, AdAge claims that mobile ad startup Medialets poses a threat to iAds, as it offers a similar service but does not demand a minimum USD1m campaign spend, as Apple reportedly does. Apple also takes a 40% on all ads served through the platform.

Last year, Apple CEO Steve Jobs predicted iAds would account for 48% of mobile ad spend by the end of last year. However, a Wall Street Journalreport shortly after the platform launched claimed that advertisers found it difficult to adjust to iAd because of Apple's "tight control over the creative process," with many of Apple’s 17 launch partners experiencing delays in getting their ads to market. A recent study by BIA/Kelsey claims iAd has boosted the overall US mobile ad market and predicts it to generate revenues of almost USD3bn by 2014.