ChasNote

In the inaugural post at his eponymous blog, my colleague Bob Buch suggests Apple’s vertically-integrated approach to business and not-integrated-enough approach to mobile advertising may limit its initial success.

“After launching DiggAds, I’ve become convinced that the future of advertising will be to integrate ads into the user experience of the site. This doesn’t mean just sticking them in the middle of the page, it means including the functionality of the site within the ad itself — essentially, transforming ads into content. Examples of this include DiggAds, Facebook’s social ads, Twitter’s new Promoted Tweets product, and of course, Google AdWords. I was disappointed that Apple did not follow this model.”

Amen.

Check out the full post.

More thoughts on the battle between Apple and Google for mobile advertising dominance.

Earlier this week Digg launched its iPhone app. Chris Howard shares more of the details (including a chance to win an iPad) at the Digg blog.

Look out, Simon and Spearfishing 3D, the Digg app has entered this week’s Top 10 downloaded apps!

Back in November, the NY Times reported that Apple filed a patent for un-skip-able ads for iPhones and iPods. Speculation at the time by ChasNote reader RolfSF:

“methinks this is geared more toward some of the ad-supported software models, perhaps giving some ‘free’ iphone apps a means to be free for a price.”

RolfSF was listening in on Apple’s earnings call earlier today and heard something that confirms his speculation: Peter Oppenheimer said the company had acquired Quattro to “offer developers a seamless way to make more money” in their apps, particularly free apps.

You have to wonder if Apple plans to staff an ad sales team.

From NYT:

“Filing a patent application, of course, doesn’t necessarily mean that the company plans to use the technology. But the application shows, at the least, that Apple has invested in research to develop what it calls an ‘enforcement routine’ that makes people watch ads they may not want to watch.

“Its distinctive feature is a design that doesn’t simply invite a user to pay attention to an ad — it also compels attention. The technology can freeze the device until the user clicks a button or answers a test question to demonstrate that he or she has dutifully noticed the commercial message. Because this technology would be embedded in the innermost core of the device, the ads could appear on the screen at any time, no matter what one is doing.”

An “enforcement routine” to force ads down the throats of iPod users?! That will go over well! It reminds me of that ridiculous attempt by Japan’s government to make it a crime to skip TV commercials back in 2005.