Apple’s App Store just hit the 100,000 mark for available applications.  Those apps account for over 2 BILLION downloads, and counting. It’s mind boggling, particularly when one considers that the store launched just 15 months ago. And, while it might be true that a good percentage of those apps are free “throw-aways” that hold no real or lasting utility, it’s worth noting that Apple gets 30 percent of the ticket on every app with a price tag. Even with prices starting at $0.99, do the math and it’s clear that Apple stands to make a nice chunk of change from a venture that Steve Jobs claimed (genuinely or not) was not going to add much to the bottom line. Some analysts expect it to become a $1 billon revenue center. Yowza.

So here’s the obvious marketing question. With that many apps, generating that many downloads, offering that many impressions - are iPhone/iPod apps seeing much traction as an advertising platform? Several new ad networks have emerged, signing on top-ranking developers to embed ad serving into free apps. The important question is, as always, how efficiently can an advertiser reach the right eyeballs and how effective is the platform in converting impressions? Efficiency could depend on the type of app and who it most appeals to. Effectiveness? Location or context-based apps (think restaurant or shopping guides) are probably a good bet, grabbing users in a spot where they’d be likely to redeem an offer.  But the real trick here becomes freshness. Free apps tend to get downloaded, used a few times, then deleted. There’s probably alot of churn on the hard drives of those phones. But the writing is on the wall. This category is still in its toddler years - we can expect it to become a more robust and precise ad platform in short order.

Posted by Steve Angel | Share: Twitter, Facebook, Del.icio.us, LinkedIn