Friday, April 09, 2010

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

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