Apple's Purchase of Quattro Wireless Confirmed [Archive]

MacRumors

Jan 5, 2010, 10:01 AM

http://www.macrumors.com/images/macrumorsthreadlogo.gif (http://www.macrumors.com/2010/01/05/apples-purchase-of-quattro-wireless-confirmed/)

Mobile advertising company Quattro Wireless confirms (http://www.quattrowireless.com/mobile_insight/blog/happy_new_year_from_quattro_wireless) today that it has been acquired by Apple. The news follows a report (http://www.macrumors.com/2010/01/04/apple-acquired-quattro-wireless-for-275-million/) late yesterday that the deal had been reached, with Apple agreeing to pay $275 million for Quattro.Happy New Year from Quattro Wireless!

We are thrilled to let you know that Apple has acquired Quattro. We want to share with you our excitement about this news and what it means for our customers.The announcement on Quattro's site is signed by former Quattro CEO Andy Miller, who reveals that his title is now Vice President of Mobile Advertising at Apple.

Earlier reports claimed (http://www.macrumors.com/2009/11/16/apple-considered-purchasing-admob/) that Apple had considered purchasing leading mobile advertising firm AdMob in the weeks prior to Google's announcement (http://www.macrumors.com/2009/11/09/google-to-acquire-mobile-advertising-firm-admob/) in early November that it would acquire the company. That deal has yet to receive (http://www.macrumors.com/2009/12/23/googles-acquisition-of-admob-delayed-for-further-ftc-scrutiny/) the approval from the U.S. Federal Trade Commission necessary for finalizing the transaction.

Article Link: Apple's Purchase of Quattro Wireless Confirmed (http://www.macrumors.com/2010/01/05/apples-purchase-of-quattro-wireless-confirmed/)

amac4me

Jan 5, 2010, 10:05 AM

Interesting move by Apple. I wonder how this plays into their mobile strategy moving forward. It's going to be an interesting 2010 for Apple. :apple:

iDisk

Jan 5, 2010, 10:07 AM

redgaz26

Jan 5, 2010, 10:09 AM

Wirelessly posted (Mozilla/5.0 (iPhone; U; CPU iPhone OS 3_1_2 like Mac OS X; en-us) AppleWebKit/528.18 (KHTML, like Gecko) Version/4.0 Mobile/7D11 Safari/528.16)

I wonder if he asked Steve if he could let the cat out the bag!!

iPoodOverZune

Jan 5, 2010, 10:10 AM

Interesting but not unexpected move by Apple. Apple goes slow in their acquiring frenzy but their approach is measured!

amac4me

Jan 5, 2010, 10:13 AM

Interesting but not unexpected move by Apple. Apple goes slow in their acquiring frenzy but their approach is measured!

Nice to see Apple using their cash for strategic acquisitions. I expect Apple to make several more acquisitions in the next couple of years.

markfc

Jan 5, 2010, 10:14 AM

This is for their Free Ad Supported OS X for PC's that's coming out later this year.

Want to get rid of the ad's? Buy a real Mac!

:rolleyes:

TheSlush

Jan 5, 2010, 10:15 AM

Interesting move by Apple. I wonder how this plays into their mobile strategy moving forward.

Here's my guess: the Quattro folks will help Apple to offer high-quality, video-enabled advertising for content providers on the new tablet. Sort of a rich-experience magazine style of advertising (full page, in between content) rather than the distracting banner ads we see on the web (partial-page, alongside content).

ipoppy

Jan 5, 2010, 10:17 AM

Hopefully Apple wont turn iPhone OS 4.0 into advertising agency some sort. After checking www.quattrowireless.com I must say that Apple can learn loads of stuff from them.

adamw

Jan 5, 2010, 10:18 AM

Congratulations Apple! You are really growing into much more than just a computer company.

When should we expect your announcement that you bought a search engine company? Ask.com, EntireWeb.com, and many similar others are likely for sale.

Full of Win

Jan 5, 2010, 10:20 AM

Gazoobee

Jan 5, 2010, 10:23 AM

Here's my guess: the Quattro folks will help Apple to offer high-quality, video-enabled advertising for content providers on the new tablet. ... full page, in between content ... rather than the distracting banner ads we see on the web (partial-page, alongside content).Do you realise how insane this comment is?

Full page ads are far more distracting than banner ads. You only have to look at the ad supported iPhone apps to see that.

Personally, I think the whole idea of "ad supported" software is an evil joke and why there are ads of any kind on the iPhone I just don't understand. I pay $800-$900 dollars for a device, I pay $70 a month for the privilege of using it, and it has ads on it?

People will eat dirt out of the yard if you present it to them the right way I guess. :rolleyes:

Chintan100

Jan 5, 2010, 10:27 AM

Advertising isnt always distracting.

Just use Tweetie for Mac and you will know. Or Twitterrifc for iPhone.

Infact i consider the ads on Tweetie for Mac to be so beautiful that its actually a feature you are removing when you upgrade. :p

talkingfuture

Jan 5, 2010, 10:28 AM

I wonder what apple have planned, perhaps they will use that big data centre for something cloud based and ad supported. iApps in the cloud perhaps..

ChazUK

Jan 5, 2010, 10:31 AM

I wonder what apple have planned, perhaps they will use that big data centre for something cloud based and ad supported. iApps in the cloud perhaps..

This (http://www.gizmag.com/apple-patent-advert/13418/) perhaps?

It'll be interesting to see where this all goes but if the ad supported developers benefit, i'm all for it!

rdowns

Jan 5, 2010, 10:36 AM

rdowns

Jan 5, 2010, 10:39 AM

Personally, I think the whole idea of "ad supported" software is an evil joke and why there are ads of any kind on the iPhone I just don't understand. I pay $800-$900 dollars for a device, I pay $70 a month for the privilege of using it, and it has ads on it?

People will eat dirt out of the yard if you present it to them the right way I guess. :rolleyes:

What does the $800-$900 have to do with ads. That's the cost of the device.

What does the $70 carrier fee have to do with ads?

Those are the costs for the device and service respectively.

Ad supported software? Don't use it. Buy versions without ads. I don't see where ads have anything to do with the price of the device or the cost of monthly service. :rolleyes:

Rot'nApple

Jan 5, 2010, 10:44 AM

Looks Like Apple will put there polish on the Ad industry. I can't wait to see the new revolutionary ideas in the Ad space.

I don't like ads but if its done by Apple, I know I'll enjoy them.

iDisk

:apple:

I don't know... an ad's an ad...

I just hope the iPhone / iPod touch / iSlate Tablet or whatever doesn't go from...

"There's an APP for that!" to...

"There's an AD for that!"... :eek:

Samuriajackon

Jan 5, 2010, 10:48 AM

Here's my guess: the Quattro folks will help Apple to offer high-quality, video-enabled advertising for content providers on the new tablet. Sort of a rich-experience magazine style of advertising (full page, in between content) rather than the distracting banner ads we see on the web (partial-page, alongside content).

Don't limit this to a tablet. If I sent out one ad per iphone alone i'd have the President of Nike's American' Advertising Division on his freaking knees right now(Probably serving me some sorta of fresh fruit deseart with yogart while watching reruns of old 90's TV Shows).

jo0

Jan 5, 2010, 10:52 AM

this is great, except that I just finished integrating admob into my frick'n app :mad:

Full of Win

Jan 5, 2010, 10:56 AM

Oh please. Did your public pronouncement make you feel better? Do you have any idea what Apple plans? Yeah, I didn't think so. :rolleyes:

I'm guessing its mobile advertising. Call me crazy, but given the IP of the company they just bought and their new department, I think its clear.

It will not happen overnight - but I could see GPS aware ads on the iPhone. For example, the GPS sees that you have entered into a Wal-Mart, at which time you will get a push notification about razors and soap.

deenybird

Jan 5, 2010, 11:06 AM

I don't like ads but if its done by Apple, I know I'll enjoy them.
wow. Just wow.
Apple - 1
Humanity - 0

zombitronic

Jan 5, 2010, 11:08 AM

I still can't imagine that this merely has to do with "ads" in the traditional sense that many of you cynics are dooming and glooming about.

Quattro "empowers advertisers and publishers." Look at some of their case studies (http://www.quattrowireless.com/mobile_insight/case_studies). A Minesweeper iPhone App. A wine company. If I wrote a book or created a digital magazine, couldn't I be my own publisher? If I recorded a few songs, couldn't I publish my own music? If I made a video podcast and wanted to sell episodes, couldn't I advertise and publish it, myself? Of course, and it would be great if Apple created a platform to allow me to do this, similar to the App Store.

Maybe this is far fetched thinking, but if this were to allow users to create and publish their own content for a tablet-like device, this could be very lucrative for Apple, individual content creators and the mobile platform as a whole.

redgaz26

Jan 5, 2010, 11:08 AM

we are going to see more and more ads on both the iphone and the tablet, hopefully apple won't make them as bad and as intrusive as some others do, personally I just don't look at them anyway!

rdowns

Jan 5, 2010, 11:09 AM

I'm guessing its mobile advertising.

Guessing? So you don't know.

Call me crazy,

I'd be happy to but we have rules in this forum.

but given the IP of the company they just bought and their new department, I think its clear.

It will not happen overnight - but I could see GPS aware ads on the iPhone. For example, the GPS sees that you have entered into a Wal-Mart, at which time you will get a push notification about razors and soap.

Of course, you could turn off those features if you didn't want them.

Maybe they did this to slow Google's growth in mobile advertising and further extend their iPhone/iPod touch ecosystem. Perhaps developers will get a better deal if they use Apple's network instead of Google's. There are many other possibilities other than your "guesses".

dejo

Jan 5, 2010, 11:13 AM

Quattro "empowers advertisers and publishers." ... If I wrote a book or created a digital magazine, couldn't I be my own publisher?
Hmm, I'm pretty sure that Quattro is referring to publishers in the advertising-sense of the word, not the broader definition you are using.

Yixian

Jan 5, 2010, 11:28 AM

Full of Win

Jan 5, 2010, 11:30 AM

Guessing? So you don't know.

An educated guess based on the facts on hand.

Of course, you could turn off those features if you didn't want them.

Maybe they did this to slow Google's growth in mobile advertising and further extend their iPhone/iPod touch ecosystem. Perhaps developers will get a better deal if they use Apple's network instead of Google's. There are many other possibilities other than your "guesses".

Guessing? So you don't know.

How do you know we will be able to turn off those features.

Full of Win

Jan 5, 2010, 11:36 AM

Put it this way, if the combination of ads and the savings on printing made by providing content digitally can bring the price of my whopping great £50 medical textbooks, of which I have about 6, then baby, bring on the ads.

I can see it now

blah blah the bacterial cell (will the PS4 use a cell processor.. find out @ engadget) wall is (sale on bricks @ Home Depot!) of peptidoglycan (do you need glycogen..find out @ heath.com).

Thanks but no thanks, I'll stick to the ad free version.

rdowns

Jan 5, 2010, 11:36 AM

An educated guess based on the facts on hand.

Guessing? So you don't know.

How do you know we will be able to turn off those features.

I don't. I'm going by how their phone works now. I have no reason to believe it will be any different. I'm not going to have a knee jerk reaction like you. I'll wait and see and take appropriate action, or inaction, at that time.

zombitronic

Jan 5, 2010, 11:40 AM

Hmm, I'm pretty sure that Quattro is referring to publishers in the advertising-sense of the word, not the broader definition you are using.

I don't think there is an advertising-sense of the word. Unless you're referring specifically to publishing commercial advertisements, but I don't see Apple's interest in that. I do see Apple's interest in distributing content, however.

If this really is Apple's foray into a greater distribution of various types of content, the question remains, why did they need Quattro? Perhaps different methods go into publishing content by Johnny Appleseed versus content by an established content provider. In the case of the larger provider, their content, such as movies or music, is published by a company other than Apple. Apple may just distribute it.

If Apple could get in on the publishing part of the process, they could create a clearer, simpler process for a creator to distribute their content. Quattro could provide an established channel for that process.

spazzcat

Jan 5, 2010, 11:40 AM

Do you realise how insane this comment is?

Full page ads are far more distracting than banner ads. You only have to look at the ad supported iPhone apps to see that.

Personally, I think the whole idea of "ad supported" software is an evil joke and why there are ads of any kind on the iPhone I just don't understand. I pay $800-$900 dollars for a device, I pay $70 a month for the privilege of using it, and it has ads on it?

People will eat dirt out of the yard if you present it to them the right way I guess. :rolleyes:

You do realize that developers have to eat right?

spazzcat

Jan 5, 2010, 11:44 AM

I'm guessing its mobile advertising. Call me crazy, but given the IP of the company they just bought and their new department, I think its clear.

It will not happen overnight - but I could see GPS aware ads on the iPhone. For example, the GPS sees that you have entered into a Wal-Mart, at which time you will get a push notification about razors and soap.

That is a good idea for an app :). It could pop coupons that could be scanned at check out...

rdowns

Jan 5, 2010, 11:46 AM

You do realize that developers have to eat right?

Most of them. I'd like to see the guy who published Fart Boobs for the iPhone starve. :D

rtdunham

Jan 5, 2010, 11:48 AM

Shows over guys - Apple now has a Mobile Advertising division. Today begins my migration off of the OS X platform. Can't do it overnight, but I'm think CS5 will be the Windows version.

This will be remembered as a dark day in the world of Apple several years from now.

Your sig says you are against "prizes awarded without merit, and leaders with delusions of Godhood..."

You didn't explain your heartfelt conclusion enough for this non-deity, at least, to understand what you think is going to happen: what's happened, how that will unfold and why it'll reach the outcome you predict.

I'm interested in getting enough understanding of your position to know whether you merit a prize. Thanks.

dejo

Jan 5, 2010, 12:02 PM

I don't think there is an advertising-sense of the word. Unless you're referring specifically to publishing commercial advertisements...
You may not think there is, but it exists. And yes, it deals with publishing ads. The IAB (the governing organization for online ad standards), has a definition of Publisher here (http://www.iab.net/media/file/GlossaryofInteractivAdvertisingTerms.pdf).

Publisher- an individual or organization that prepares, issues, and disseminates content for public distribution or sale via one or more media.

A more casual definition: any site that delivers ads alongside content

aristotle

Jan 5, 2010, 12:06 PM

cmaier

Jan 5, 2010, 12:08 PM

Most apps in the appstore are free. Most of those are ad supported. Apple doesn't get its 30% cut of that. This way it gets a piece of that pie.

zombitronic

Jan 5, 2010, 12:14 PM

Publisher- an individual or organization that prepares, issues, and disseminates content for public distribution or sale via one or more media.

A more casual definition: any site that delivers ads alongside content

The definition that you provided does not say anything about ads. The word it uses is content.

When I think of content I tend to think of media such as music, movies or words, not ads.

My assumption is as good as yours, but when I picture Steve Jobs playing with his iSlate prototype and saying, "It needs more content," I believe he's referring to media content, not ads.

Kevlar

Jan 5, 2010, 12:30 PM

Most apps in the appstore are free. Most of those are ad supported. Apple doesn't get its 30% cut of that. This way it gets a piece of that pie.

Great post. Apple will make an easy API for app store developers to tie into for ads. That way Admob (soon to be google) makes less off the iphone and keeps the money coming back to apple.

primalman

Jan 5, 2010, 12:34 PM

Full of Win

Jan 5, 2010, 12:34 PM

You have a crystal ball? What are the LottoMax numbers for this Friday's draw?
:rolleyes:
Maybe you should change your username to "Full of S__t". I'll let you fill in the blanks.

I'm just giving the logical conclusion, in my opinion, when you give someone control of the OS with advertising facilities built into its core. I don't think it will happen all at once, but over time it will seep in. I've been using the iPhone since release day and I can see it happen in the apps, where the ads are becoming more and more 'in your face'.

Fill in the blank, oh I get it, Full of Smart. Thanks for the complement. :)

Can I send you a buddy request? :)

dejo

Jan 5, 2010, 12:48 PM

The definition that you provided does not say anything about ads. The word it uses is content.
Are you saying that you could envision Quattro Wireless transitioning from something that assists publishers in providing ads to an actual content publisher themselves? If so, I see your point. I don't think this is at all what they want Quattro for so I'll have to disagree. I believe that what cmaier is saying is the case: they just want a cut of the ad revs as well.

zombitronic

Jan 5, 2010, 01:18 PM

Are you saying that you could envision Quattro Wireless transitioning from something that assists publishers in providing ads to an actual content publisher themselves? If so, I see your point. I don't think this is at all what they want Quattro for so I'll have to disagree. I believe that what cmaier is saying is the case: they just want a cut of the ad revs as well.

I don't see Quattro transitioning into anything. Since Apple acquired them, I believe they'll cease to be a separate entity and their resources will become Apple's resources, à la FingerWorks (http://www.fingerworks.com/).

Apple is already a content provider with the iTunes Music Store and, in a loose sense, a publisher with the App Store. I believe that Apple could leverage Quattro's resources in advertising to help individuals self publish and advertise their own content. Again, I know it's a stretch, but it seems feasible and as if it could be very lucrative.

blackpond

Jan 5, 2010, 01:28 PM

Personally, I think the whole idea of "ad supported" software is an evil joke and why there are ads of any kind on the iPhone I just don't understand. I pay $800-$900 dollars for a device, I pay $70 a month for the privilege of using it, and it has ads on it?

People will eat dirt out of the yard if you present it to them the right way I guess. :rolleyes:

LOL! Are you really prepared to start paying Google to use its search engine, Facebook to talk to your old buddies and, not to mention, a MacRumors monthly subscription?

ad supported = the "free" internet.

dejo

Jan 5, 2010, 01:32 PM

I believe that Apple could leverage Quattro's resources in advertising to help individuals self publish and advertise their own content.
I see where you going with this. But I'll disagree with one part because I see nothing in Quattro's current resources that would help individuals self publish. They are strictly focused on allowing publishers to integrate advertising into their already existing or planned content.

LeoNobilis

Jan 5, 2010, 02:06 PM

Nice to see Apple using their cash for strategic acquisitions. I expect Apple to make several more acquisitions in the next couple of years.

It appears to me that you're more excited about Apple's growing influence than your piece of mind!
By the way, as soon as Apple's global market share reaches anything in the vicinity of 50%, myself, up till very recently the greatest fan of the company and its products, won't hesitate to reverse my loyalty in favour of anything more exclusive, less popular, more trustworthy (N.B.: 2 of my PowerBooks had irredeemable logic board failures within 3 years of use!). I hope, Palm appropriates its excellent WebOS for desktop computing as well.

Back to Apple with its latest acquisition! Does anybody still question the growing similarity, obvious as anything by now, with Micro$oft? Even the OS GUI of Vista or Windows 7 is no more the prehistoric nonsense their forerunners' were (although not yet as polished as Mac OS X, but not far behind, either).

If not for my elitist disposition and shame of being even remotely associated with Windoze, I'd have switched to an alternative system after my first faulty logic board!

zombitronic

Jan 5, 2010, 02:15 PM

I see where you going with this. But I'll disagree with one part because I see nothing in Quattro's current resources that would help individuals self publish. They are strictly focused on allowing publishers to integrate advertising into their already existing or planned content.

True, and my idea is based upon much speculation. Apple already seems to be competent enough to help advertise the content they distribute (via the iTunes Music Store/App Store).

I'd just like to believe that Apple could do more with this acquisition than capitalize off of in-app ads. Though, if this can be used to make in-app ads easier to implement, more relevant and less intrusive while earning them revenue at the same time, it won't be such a bad thing. At least not as bad as those who feel this will cause an exodus of Apple customers.

MarcelV

Jan 5, 2010, 02:21 PM

This is a good step for Apple to use for the subscription TV/VOD plans. Think about it. You surf the web, stats are build, and when watching TV shows and/or movies thru iTunes or AppleTV, targeted ads are shown. We are already used to it, whether you have OTA, Cable or Satellite. Q Elevation and Q Deliver are a pretty good match...

IMHO, this isn't OS driven, but content driven... And don't forget that Apple has become a huge content provider.

cdinca

Jan 5, 2010, 02:33 PM

Do you all think apple will force developers of free apps to use their service instead of AdMob, or just encourage them?

xIGmanIx

Jan 5, 2010, 02:36 PM

Probably the scariest post i have seen in a while and not sure if everyone would agree with your sentiment.

Looks Like Apple will put there polish on the Ad industry. I can't wait to see the new revolutionary ideas in the Ad space.

I don't like ads but if its done by Apple, I know I'll enjoy them.

iDisk

:apple:

cmaier

Jan 5, 2010, 02:46 PM

Do you all think apple will force developers of free apps to use their service instead of AdMob, or just encourage them?

Forcing them would possibly be an antitrust problem, so I'd expect little more than encouragement (for example, being able to arrange payments and administer ads through iTunesConnect accounts).

talkingnewmedia

Jan 5, 2010, 03:44 PM

True, and my idea is based upon much speculation. Apple already seems to be competent enough to help advertise the content they distribute (via the iTunes Music Store/App Store).

I'd just like to believe that Apple could do more with this acquisition than capitalize off of in-app ads. Though, if this can be used to make in-app ads easier to implement, more relevant and less intrusive while earning them revenue at the same time, it won't be such a bad thing. At least not as bad as those who feel this will cause an exodus of Apple customers.

Good conversation guys. Here is my two cents:

There is no reason to buy this company unless they wanted their expertise in a new area -- in this case, the tablet.

A question: what would prevent publishers from quickly adopting the Apple tablet as their preferred mobile media format? A way to monetize the publication.

Quattro Wireless sees themselves as assisting publishers publish to the iPhone by helping them integrate advertising into their apps, right? They also help advertisers use the formats they have created.

They seem to be doing a good job of this, but that alone doesn't seem like a good reason to buy them. If Apple wants their tablet to dominate the "reader" market (admitting the new tablet will not simply be a reader like what Skiff introduced (http://talkingnewmedia.blogspot.com/2010/01/hearsts-skiff-to-unveil-new-reader-at.html)) then they need to convince publishers that there are new revenue opportunities if they adopt the tablet as a format.

The problem I see is that so many publishers are completely unprepared (http://talkingnewmedia.blogspot.com/2010/01/so-youre-excited-about-apples-new.html) for this new market -- heck, most traditional publishers are still struggling with the web.

But here is where the idea of "self-publishing" (I would prefer to call it "small publishing" because I still see it as a commercial venture) comes in: the creation of a viable "tablet media" could allow individuals or small companies to publish directly to a tablet format that is advertising supported (thanks to Quattro). This new form of media could compliment print publishing, or compete with it head on.

I personally believe the technology is way ahead of the publishing industry and that for mobile publishing to succeed new players may have to enter the scene. If we are all waiting for the folks at USA Today to show us what they can do on an Apple tablet we may be waiting a long time.

In the end, it is all speculation. Apple may have bought Quattro because they liked the name. ;)

appleguy123

Jan 5, 2010, 03:54 PM

I'm guessing its mobile advertising. Call me crazy, but given the IP of the company they just bought and their new department, I think its clear.

It will not happen overnight - but I could see GPS aware ads on the iPhone. For example, the GPS sees that you have entered into a Wal-Mart, at which time you will get a push notification about razors and soap.

I kinda like this idea. Maybe I am weird like that.

aafuss1

Jan 5, 2010, 04:06 PM

Interesting-as Apple hasbn't issued its usual "we usually acquire smaller companies but don't comment on our plans for them" statement.

cmaier

Jan 5, 2010, 04:08 PM

Good conversation guys. Here is my two cents:

There is no reason to buy this company unless they wanted their expertise in a new area -- in this case, the tablet.

...

Quattro Wireless sees themselves as assisting publishers publish to the iPhone by helping them integrate advertising into their apps, right? They also help advertisers use the formats they have created.

They seem to be doing a good job of this, but that alone doesn't seem like a good reason to buy them.

Money is a very good reason to buy them. Apple is unable to monetize the vast majority of apps in the appstore, yet Apple must pay for the infrastructure for reviewing, storing, and delivering these apps. Apple takes only 30% of the price of PAID apps, and nothing for ad-supported apps. Apple intends to continue to grow the appstore and the majority of the apps in the store will continue to be free, and most of those free apps will be ad-supported.

So how can Apple manage to make a little bit more money (beyond hardware sales) from the sale of free, ad-supported apps, in a manner that will scale the money as the number of apps (and hence the cost of their review, storage, and distribution) grows?

Well, one way would be to take a cut of the ad revenue.

So apple compares the cost of creating an ad network vs. the cost of making this purchase, and here we are.

dejo

Jan 5, 2010, 04:14 PM

There is no reason to buy this company unless they wanted their expertise in a new area -- in this case, the tablet.
And what makes you think that Quattro has expertise in the tablet area?

talkingnewmedia

Jan 5, 2010, 04:26 PM

And what makes you think that Quattro has expertise in the tablet area?

It's called speculating. ;)

But if the tablet is going to run a version of the iPhone OS, which is itself a version of OS X, then the leap would be a short one, wouldn't it? Who better to get the ball rolling on tablet formats than a company that already has experience with the iPhone?

As for Apple taking a cut of ad revenue, cmaier . . . Do you see the New York Times splitting their revenue with Apple? No way.

But, Apple wins either way. As I wrote on another site, Apple sells things: they created the iTunes to sell iPods, the app store to support the iPhone. If they could convince publishers to adopt their tablet they will sell a lot of tablets.

Competition is nice, but media needs dominate formats. Hearst does not want to have to design a mobile version of Sports Illustrated for the the Apple tablet, then redesign it again for the Kindle, and again for the Sony reader, and again for the Skiff Reader, etc. etc.

But I am only speculating. The good news is that a lot will become obvious by the end of the month.

cmaier

Jan 5, 2010, 04:33 PM

It's called speculating. ;)

As for Apple taking a cut of ad revenue, cmaier . . . Do you see the New York Times splitting their revenue with Apple? No way.

what are you talking about? WHo said anything about the NY Times?

The vast majority of free apps are from independent publishers who use ad networks (for example, google adsense) to place ads in their apps. In exchange, Google pays the independent publisher (after taking their own cut). Advertisers bid for placement in the ads.

This is what Quattro is about. Advertisers pay them for placement, and Quattro pays the software developers after keeping a cut.

Huge publishers like Hearst and NY Times obviously have their own ad sales team and infrastructure, though for all I know they also use ad networks to fill in gaps.

talkingnewmedia

Jan 5, 2010, 04:39 PM

what are you talking about? WHo said anything about the NY Times?

You made a simple statement: Well, one way would be to take a cut of the ad revenue.

That is what I responded to.

I agree that there is a very good chance they Apple is interested in ad networks -- I wouldn't put it past them. I also agree that finding a way to monetize free apps has to be something Apple desires, if only to offset the costs you mentioned.

Looking at the Quattro gallery (http://www.quattrowireless.com/mobile_insight/creative_gallery), these guys are doing a lot interesting things beyond even advertising.

cmaier

Jan 5, 2010, 04:46 PM

You made a simple statement: Well, one way would be to take a cut of the ad revenue.

That is what I responded to.

I thought it was obvious that since Quattro isn't even the predominant ad network in the mobile space (Admob, adsense, etc.) that my statement didn't imply that every developer must give a cut of its ads to apple. In fact, in another post in this thread I pointed out the antitrust implications if Apple mandated that ads be placed through its own network.

TheSlush

Jan 5, 2010, 07:41 PM

Do you realise how insane this comment is?

Um, no. Hey, I didn't design the world, I just live in it. :p

Full page ads are far more distracting than banner ads. You only have to look at the ad supported iPhone apps to see that.

Okay, well... then consider television advertising as an alternative metaphor. Unlike the intricately interlinked web, TV content and magazine content are both consumed in a linear fashion: beginning to end. (You can skip around within a channel/issue of course, but only in a linear, front-to-back way.) This allows TV commercials and (most) magazine ads to exist "in between" pieces of content rather than simultaneously alongside it. In this way, the ads are not attempting to actively distract your eyes from your task at hand of consuming content, as web banner ads do. Rather, they temporarily take over completely from the content. (There are continuous attempts to replicate this on the web. In my opinion, only Hulu has managed to do it in a way that isn't annoyingly invasive: basically replicating the TV commercial approach.)

Web content, of course, is not consumed in a linear way; it's consumed in a largely fragmented way, often from multiple sources. There is no opportunity in that paradigm for "in between" advertising. Web advertisers have no choice but to try to distract you with "alongside" advertising because the web paradigm simply doesn't provide any other place for them to insert their messages during the consumption experience.

Assuming Apple's tablet is not marketed primarily as a web browser, but rather as a published content-consumer, the tablet experience might more closely emulate the linear content of television channels and magazine issues. If so, then Apple too could offer full-screen "in between" advertising to its content providers... and the Quattro folks might just be the ones to execute that job.

Personally, I think the whole idea of "ad supported" software is an evil joke and why there are ads of any kind on the iPhone I just don't understand. I pay $800-$900 dollars for a device, I pay $70 a month for the privilege of using it, and it has ads on it?

People will eat dirt out of the yard if you present it to them the right way I guess. :rolleyes:

So um, if you subscribe to a magazine, you expect to get issues with no ads in them? :confused: