How Will The iPad 3 Impact Audience Buying Available Through The iPad?

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iPad 3The Apple product development machine continues to produce new instrumentation for the hungry, digital hoards as last week's announcement of its third-generation iPad appeared as anticipated as any of its iPad predecessors. Though not revolutionary given the presence of the first two, the new iPad may present unique opportunity to various parts of the digital media ecosystem - including ads.

And so, AdExchanger reached out to a selection of executives working in online ads and requested their thoughts on the new iPad. Specifically:

"How will the latest iPad update impact the audience buying opportunity available through the iPad?"

Click below to read the responses, or scroll for more:

Amanda Richman, President, Digital at MediaVest (Publicis)

"The growing abundance of tablets in the marketplace makes content more accessible than ever, creating an always-on connection with consumers. With each iPad update we see more video consumption, more scale in the tablet space, and more client conversation around creating meaningful experiences instead of ads. Equally important is their updated approach to advertisers. With lower points of entry and greater flexibility, they're in a better position to convert the iPad3 momentum into iAd deals."

Brian Stoller, Managing Partner - Leader Digital Strategy, Mindshare North America (WPP)

"There is nothing intrinsic about the Retina HD display, the quad-core GPU, or the 5MP camera, or any of the other new iPad’s features that make it dramatically any better of an experience than the iPad has already been for media buyers to leverage audience buying. With more features, and more iPad’s in market, we will obviously see another increase in audiences sizes.

Where ad buyers have not taken advantage of the iPad's opportunities resides in understanding scenarios for when a user chooses the iPad over mobile phone, PC, or (dare I say) television for consuming content. Casual shopping appears to be a use state that expands among iPad users, along with video consumption.

The biggest value to advertisers is in the ‘media meshing’ capabilities of the iPad through Social TV platforms. 71% of tablet owners have gone online while watching TV (Ipsos MediaCT, Fall 2011). The emerging trend of audiences simultaneously consuming iPad and TV media can unlock conversations with and among consumers. To this end, the real challenge to the media buying industry will be de-duplication of cross-device audiences within privacy guidelines."

Bryan Jones, CEO, Collider Media

"The Apple iPad announced last week gives users access to an improved tablet, one with higher resolution, faster connectivity, and graphics that will enable more rich media and video to be consumed. On the surface, the changes to the iPad look to have a minimal impact on mobile advertising. However, this announcement will impact the number of users, the diversity of such users and the amount of media consumed. With the launch of the iPad 3, the price of the iPad 2 was reduced by $100. This price reduction allows a larger and more diverse audience to purchase the iPad and further its adoption into the mainstream. And, with the exceptional screen, more lean forward media (movies, tv shows, etc.) will be consumed. The end result for advertisers is that the audience segments on mobile are now mirroring those historically found on television. To the extent the mobile advertising industry is able to identify and target these audience segments in a way that aligns with the dollars allocated to TV advertising, significant marketing spend will flow away from traditional TV and into mobile as advertisers look to effectively engage with their target consumers."

Sal Candela, Mobile Director, PHD (Omnicom)

"Although it may not seem like a drastic improvement, the new iPad will have a tremendous impact on the tablet marketplace from both an audience and marketer perspective. The hardware updates – faster processor, richer display, 4G LTE compatibility – will all contribute to changes in user consumption and the availability of new content.

In typical Apple fashion, the new iPad has driven down the cost of its predecessor allowing for more widespread adoption across younger and less affluent consumers, similar to the effect of the iPhone 4S release. This will not just help Apple maintain a dominant market share in the tablet category, but will also increase general tablet penetration across the country and around the world.

It’s no surprise that iPad users already have an insatiable appetite for content, but this new iPad will enable higher levels of usage that content providers will openly embrace. Expect to see TV networks and cable providers make strides forward with their TV Everywhere strategies, as some of their previous concerns around delivering quality experiences will be alleviated with the high-definition display and hyper-fast connection speeds of 4G LTE.

But probably the most seismic change to the new iPad is the A5X processor, which will transform the gaming industry forever. This clearly positions the new iPad as perhaps the ultimate gaming console/device that will have a massive impact on the gaming industry.

While at first glance the new iPad might just seem like minor updates and doesn’t have the Apple 'magic' that has wowed critics in the past, rest assured that these changes will have a profound effect on usage and content options that marketers will need to be thinking and crafting strategies around."

Marcus Startzel, GM of North America, Millennial Media

"Having a new iPad available in market (as well as decreasing the price of the iPad 2) will increase the overall base of iPad users, and that should have an impact on the audience buying opportunity. As features keep improving, different types of people are finding their own unique uses for the device. High school students may be using them as textbooks, while enterprise businesses can use them to create presentations. No matter what audience a brand is trying to target though--there is a good chance they can do so on the iPad, and this should only increase in the future.

In terms of the new features, the increased resolution offers an exciting opportunity for brands to create beautiful looking ads that will drive engagement.

The rise of mobile video has also been one of the major trends of the last few years and the new Retina Display should provide a premium video watching experience. Brands from numerous verticals are finding unique ways to use video in their campaigns (ranging from auto brands like Porsche to movie studios like Paramount), and the new iPad presents an opportunity that marketers can leverage."

Gabriel Cheng, Associate Media Director, Ansible (IPG)

"We believe that not only will the new iPad increase the overall adoption rate of iPads in general, but that this proliferation of tablet-friendly households will open up audience buying opportunities beyond the typical 'early adopter' and 'innovator' audiences that we've historically seen with the iPad.

Firstly, the combination of the newest iPad and the resulting discounted iPad 2 will grow the scale of the total tablet audience, which will please many reach-seeking brand advertisers. Historically, most iPad audience-buying strategies have been very straight-forward due to a lack of scalable audience segments that can be targeted by advertisers. However, with the growth of the iPad audience in general, we should begin seeing new audience opportunities as iPad buyers will increasingly include not just innovators and early adopters, but also mainstream technology consumers. We believe that we will begin to see a shift from not just one iPad per household, but each family member with his or her own. We should also begin seeing more enterprises add or replace laptops with tablets. We already know that the iPad is emerging as the consumer's primary screen, with engagement rates trumping other Internet-connected devices and co-viewing in the living room with the tablet becoming the norm. So, as audience segments begin to hit critical mass, buying strategies will begin to evolve from the old 'content as proxy' method to audience based buying. The ability to target an engaged audience at scale is the triple play opportunity advertisers need to prepare for after Apple's latest release."

Paran Johar, CMO, Jumptap

"By nature, the iPad is a content consumption device. Its larger form factor lends itself well to deeper engagement levels. Adding an HD element takes graphic visuals to the next level and gives advertisers the chance to really shine with the latest in dynamic rich media. The addition of 4G LTE is a plus for advertisers and publishers alike, increasing the speed at which ads load thus allowing for a better user experience. iPad is still a more engaged device than TV. Should Apple launch Apple TV powered by iOS, we'll really see the audience buying and targeting capabilities soar. It would set the groundwork for customized ad experiences based on where a user is consuming media and being able to develop a content strategy. For example an advertiser may showcase a branding ad in an app on AppleTV, then serve a product focused ad on the same users iPad and then an action oriented ad for that same consumer on their iPhone."

Nathan Adkisson, Strategist, Big Spaceship

"The iPad 2 was the most user-friendly device available, and the new edition blows it out of the water. The new retina display has a higher resolution than HDTV, and the new quad-core graphics processor and LTE network capability allow for fast, rich data transfer. It’s no longer about giant in-home theaters – it’s about gorgeous streaming video on the go.

There are currently 525,000 apps in the App Store, competition for consumers' attention escalates, and an even smaller percentage of apps will gain a significant audience. The ones that do will take the "lean back" tablet experience to the next level by presenting an engaging mix of content consumption, curation and creation.

Many brands have the advantage of paid media resources to attract initial attention, but users will continue to choose the apps that surprise and delight. Adapting a TV or PC experience for the tablet won't cut it. Success will require a fundamental shift in thinking. This means thinking about the strengths of the device and designing for them from the beginning, which means: interactive video and immersive experiences.

The race is on to see what brands can deliver this on a regular basis. Apple has provided an ideal medium for the modern consumer, and now it's up to brands to take advantage of it. The smart ones know this: designing for tablets just went from a 'nice to have' to 'must-have.'"

By John Ebbert

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