The iPhone is perhaps the best mobile advertising vehicle because it is optimized for rich media applications and mobile browsing. Over time, iPhone application users have become an attractive demographic for advertisers because of their higher engagement with online media. iPhone application advertising thus emerged out of this engagement quotient and enterprises, especially retail, used this platform to show chase their individual USPs.

Riding on the new wave of iPhone application advertising, a host of median and technology companies have emerged to provide advertising related tools and analytics for iPhone developers. Many have a dedicated business unit for iPhone and are serving a host of Fortune 500 companies. Adidas, Chanel, Audi, and Levis are some of the companies who are cashing on iPhone application advertising.

It’s not difficult to gauge the popularity if iPhone application advertising where technologies like GPS is integrated with video and content. Video can react to user movements and you can add voices and control interactions. The advertisements, in future, will be available to users when the iPhone is in offline mode. This is attributed to advances in pre-caching technology and is expected to be a hit with 3G subscribers.

Apple’s App Store is flooded with applications which is certainly good news for Apple shareholders and analysts. As the store matures, they will be challenged to maintain the growth, innovation and dynamism of their applications. Moving away from the App Store, app developers have started exploiting social media tools like Twitter and Facebook. iPhone application advertising features heavily on these sites where users can download the app and subsequently rate it.

iPhone Application Advertising: Revenue Models

In the first model, companies deliver the content in multiple formats and target a mass market. The free app is advertising supported and hosted on media like Wired, Facebook, and NY Times.

In the second model, companies create a buzz around the app by offering it for free and marketing it to as many users as possible. Companies drive users to their website, create a campaign and find a source of revenue by selling data collected through market research.

In the third revenue model, companies sell the apps ranging from 99 cents to .99. These apps specialize in gaming and language translations. Advertising is done at a low price point and is aimed to achieve straight revenue.

iVdopia is the advanced mobile advertising platform and network, pioneering rich media and video advertising on iphone, android and other smart phones, including Pre-App video and social networking options on smart mobile devices providing better monetization opportunities for app developers. iVdopia’s brand-centric mobile advertising network and platform is used by top developers and brands such as Coca-Cola, Warner Brothers and Miller Lite to deliver premium advertising campaigns.

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