iAd // Apple Mobile Advertising Platform // Projected Revenue = $4.7B

When Apple's just-announced iAd mobile advertising platform matures and sees wide support from the App Store developer community, it could generate as much as $4.7 billion in revenue per year for the company, one analyst believes.

Broadpoint AmTech

Brian Marshall with Broadpoint AmTech said Friday that Apple could employ a "hybrid" ad pricing model that would include cost per click, cost per action, and cost per 1,000 viewers. In a wide-ranging sensitivity analysis issued in a note to investors, the high-end pricing assumption could generate $32 per 1,000 viewers, at a price of $0.032 per ad, generating $4.67 billion in revenue in one year.

In the middle ground of his analysis, which Marshall cautioned investors relies on "numerous assumptions," Apple would earn $17 per 1,000, resulting in $2.48 billion in revenue.

"Once again Steve Jobs and gang did a phenomenal job with the iPhone OS update scheduled for summer (iPhone/iPod touch) and fall (iPad) launch," Marshall wrote. "While we believe multitasking was the single most incremental functionality added (of the 100+ new features), it is our view that AAPL's new mobile advertising platform ("iAd") stole the show and will be significant to the financial model."

He continued: "In fact, we believe the iAd platform could generate an incremental $2.5bil in revenue and $1.00+ to AAPL's financial model when the business hits its stride."

Broadpoint AmTech

Continue reading @ http://www.appleinsider.com/articles/10/04/09/apples_iad_platform_called_a_billion_dollar_opportunity.html

Posted via email from MEDIA CHECK


About Michael

Create and execute cutting edge digital advertising and marketing campaigns using the latest internet and mobile technologies to target connected and millennial audiences.

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