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Want to Run Location-Based Ads in Your iPhone App? Not So Fast.
The Apple iPhone developer’s blog has an interesting entry from yesterday that discusses location-based advertising in iPhone apps. The usage of GPS functionality to deliver local information must provide “beneficial information” to the user.
The entry notes (my emphasis), “If you build your application with features based on a user’s location, make sure these features provide beneficial information. If your app uses location-based information primarily to enable mobile advertisers to deliver targeted ads based on a user’s location, your app will be returned to you by the App Store Review Team for modification before it can be posted to the App Store.”
MacNN has a good look into what this decision means for developers and for Apple. “Many analysts believe Apple is preparing to launch a mobile advertising network that will serve ads through free apps on the iPhone, iPod touch and iPad. The company recently acquired Quattro Wireless, a mobile advertising specialist, after reportedly failing to sign a deal to purchase AdMob. The latter company was later picked up by Google,” MacNN notes.
Developer Craig Hockenberry mentions the change in a tweet last night, “Looks like Apple is going to keep location-based advertising to themselves.”
The use of the word “primarily” makes me believe that some level of ads will still be allowed. I’m not sure I agree with MacNN in that Apple would tell developers no, only to tell them yes if you use our advertising network at a later date.
What does this mean for location-based services including BrightKite, Loopt, Foursquare and Gowalla? Would an offer at a local merchant based on a “check-in” qualify as an ad?
Yeah I’m not sure about this play ey, it’s getting into dangerous space. Sure I could potentially understand Apple saying that Location based adverts … need to come through them? (although that’s anti-competitive – but what’s new ey?)
how’s this going to impact LOCAL aware applications?
For example, Foursquare … you click on a cafe your friend has checked into – Foursquare can alert you to “offers nearby” – which I assume as a business owner I pay for that (the ability for my offer to be promoted by location)
I’m responsible for Mobile for our business (we are a directory business) .. we are exploring location awareness, ability for cross promotion and ability to promote offers, notices etc to users based on their location. Is Apple going to block us from doing this? You can BET we’ll be charging our advertisers for these features …
Apple rejected our app last time 3 times – why? Because we CHOSE to use icons that were too similar to their own. ?? They thought they would confuse users – WTF? We wanted to use standards!
Are we now going to be crossing over and stepping on their toes because we want to deliver location aware rich content, offers and adverts to users from OUR apps, based on our massive collection of rich business data?
Seriously – it’s thinking like this that is pushing me more and more to WEB APPS. If Google can launch Voice in and HTML app – there is no limit to what we could do.
The question of “will check-ins count” is interesting, but doesn’t it seem crazy to even get into particulars? I bought the darned phone, I’m choosing to download the apps I do, ought I not be able to be monetized as a customer any way that I and the app creator agree upon?
Yea Marshall it’s a hard question to answer – doesn’t Apple control the “pipe”?
This post got me thinking and then something hit me… this is only the beginning. Come WWDC Apple is only going to allow ads they serve on free apps (quattro wireless). Posted some more in depth thoughts here:
http://jasonlbaptiste.com/commentary/prediction-apple-ads-serve-quattro-wireless-ban-iphone-apps/
Steve Jobs really meant it when he said “We’re not going to let them (kill the iPhone)”
You know the more I think about this the more I think this is aimed at google.
Google bought admob and if it’s to be believed apple wanted it.
If apple allow local ads at a later date but only if you use their ad network then they I think they are going to end up in court for anti competitive behavior.
Firstly, it’s absolutely ridiculous of Apple to block this potential revenue source. Each user has the ability to get rid of Apps they don’t like and for Apple to just say “no, you can’t make money this way” is obsurd.
I can’t see how it can prevent the likes of foursquare and gowalla not profit from check ins…It’s a manual trigger that most users should by then know will trigger a relevant location based ad. If the user doesn’t like it – pay up and shoot off somewhere else – but at least in that case, it’s down to the developer to make sure ads are up to scratch and “beneficial” as possible.
I think everyone is reading too far in to this! To me this simply seems like they are no longer allowing apps that ONLY use location to serve ads, annoying users with the alert to give access to location services when it is not necessary for the app to function.
Yeah that’s what it sounds like to me. I don’t think apps like foursquare are in trouble because they depend on location to work – local ads are secondary (even if that’s foursquare’s business model).
Exactly – FourSquare uses location for the app’s features (not JUST ads). Apple is trying to stop the apps that only grab your location for Ad networks to use – which some might think it unfair but it is all about removing that hassle and confusion for users.
I disagree. The fact that we are trying to unpack the meaning of Apple’s recent dictate is immediately troubling. They are using FTC approved transmission, and therefore have to abide by FTC regulations. They may not “customize” our chosen communications to meet their particular goals, whether those goals are “good” or “bad.” It is out of their purview, and I am confident that they have received legal counsel to this effect.
What the apparent prohibition will do is put a chill on development, and investment, and slow down growth in those areas. If legally challenged, Apple would relent but still have enjoyed the advantage of progressing toward their own location-based ad goals in the absence of stiffer competition.
Basically, what they’re doing violates 1st amendment commercial speech protections. And, they know it.
This also brings to mind the continuous battle between open-source and proprietary systems. Apple is a closed box while Google’s Android is open. You do not need to pass approval before launching a Google app. Let’s see where consumers end up, voting with their dollars. I love my new Nexus 1.