Business Model: The Walled Garden of Ads… Apps

Beet.TV caught up with Marc Ruxin, Chief Inno­va­tion Offi­cer of Uni­ver­sal McCann, to get the inside scoop on Madi­son Avenue’s take on the cur­rent state of dig­i­tal advertising.

It should come as no sur­prise to any­one that both adver­tis­ers and their cre­ative houses are on a quest to deliver mes­sages in a more effec­tive man­ner. These deliv­ery expe­ri­ences need to be con­tex­tual and deliv­ered into a self-selected environment.

Apps, in par­tic­u­lar iPad Apps are looked upon as the first gen­er­a­tion of niche mar­ket engage­ment vehi­cles that fit this bill. But at an aver­age invest­ment of $100,000 there is con­sid­er­able concern. Marc points out that there will be a steep and costly learn­ing curve around the new world of Apps. And, it’s not just Apple, Google Apps is also track­ing at a face pace for the Android.

The three chal­lenges Marc out­lined were:

• lack of a set of standards
• lack of experience-based knowledge
• pro­duc­tion cost

The good news, just as with web­sites and other nascent inno­va­tions before that, the invest­ment cost (dol­lars and brain­power) will rapidly decline as more indi­vid­u­als deci­pher the riddle.

You can watch the video here.