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Tribal DDB iPad Briefing

A Tribal DDB point of view on the Apple iPad and what it means for your digital strategy. Some things to consider as you examine the iPad as a means of consumer experience and brand extension.

Tribal DDB iPad Briefing

  1. 1. With the launch of the iPad on aPril 3, We need to exPlore: What it is How it will be used How pervasive it will become Who will use it How it will engage your consumers What impact it will have on your brand strategy
  2. 2. What is the iPad and how much does it cost? Page 3
  3. 3. the iPad is a tablet that may redefine how we interact. it combines the portability of a smartphone with the basic functionality of a laptop. • 9.7” LED-backlit display (8x’s the size of an iPod Touch) • Multi-touch point interaction • High Resolution (Up to 720 p) • Lightweight (1.5 pounds) • Thin (0.5 inches) • Expansive-onscreen keyboard • Wi-Fi enabled • GPS and 3G wireless capable • Increased processor speed, memory and battery life (a remarkable 10 hours) • Accelerometer
  4. 4. the iPad is not: • A Phone • A Multitasker • A Camera • Or a fully-functioning laptop (It is something more akin • Flash friendly to a Netbook)
  5. 5. the $499 starting price is accessible when compared to a high-end netbook, but if compared to other mobile devices, price could be a barrier. 16GB 32GB 64GB Wi-Fi $499 $599 $699 Launched April 3 Wi-Fi + 3G $629 $729 $829 Available late April
  6. 6. how will it be used? Page 7
  7. 7. the iPad is not a consolidation device, but a new, rich way to consume multimedia…on the go. • Surf the web • Read and download books, magazines and newspapers • Check your email • Listen to and download music • Watch movies, videos, shows and more in high definition • Navigate with GPS (3G Models only) • Play games
  8. 8. it even has the potential to move beyond media consumption and into the “basic” laptop market. The iPad is a multi-touch tablet that reduces PC “baggage” by removing the physical keyboard (an external can be purchased) and mouse. • On the iPad, gesture is king It can also be used for high-end word processing, and spreadsheets. The iPad includes a revamped version of Apple’s iWork productivity apps: • Keynote • Pages • Numbers
  9. 9. Surprisingly, one study found the top 4 planned uses for the iPad were: • Mobile productivity • Replacement for a basic laptop • eReader • Entertainment 13% ereader 38% other 20% Mobile Productivity 19% 10% laptop/netbook entertainment replacement Source: http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=125242
  10. 10. how pervasive could the iPad become? Page 11
  11. 11. the success of the iPod touch is a good indicator for how the iPad will fare. Since teen consumer behavior mirrors that of tech-early adopters, a look at the success of the Touch with teens may help us understand the expanse of the market for the iPad. • 40% of the iPhone/Touch market are actually Touches – primarily owned by teens • App downloads on the Touch have now surpassed those on the iPhone Although the Touch lacks phone capabilities, there is an obvious appetite for the technology and the interactivity it offers. “The iPod Touch is quietly building a loyal base among the next generation of iPhone users, positioning Apple to corner the smartphone market not only today, but also tomorrow (i.e. Lifestage Marketing tactics).” – Flurry Essentially, the iPod Touch is a bridge product to the iPhone for teens. However, the iPad does not seem to be an analogous bridge product to the iPhone or Macbook. So where does the iPad fit?
  12. 12. the iPad actually sits between the iPhone and the Macbook, not as a replacement, but as a new type of device. and it is selling. Apple sold more than 300,000 iPads on Saturday, April 3 and estimate that over 700,000 were sold between Saturday and Sunday. The new owners have been busy: • Over 1 million iPad apps were downloaded Saturday • 250,000+ books were downloaded within hours of launch Analysts project 3 – 7M iPads will be sold in 2010.
  13. 13. Who will use the iPad? v
  14. 14. that is still to be determined. What we do know is the iPad is versatile enough to reach a number of different segments. • Gadget-heads • Current Apple owners and enthusiasts • Gamers • Non-Apple owners who want to dip their toes into the Apple waters • Prospective Netbook owners • Prospective Amazon Kindle owners • Frequent travelers who want more out of a tablet device • Educators and students • Light users of PCs (e.g. older generations)
  15. 15. how will the iPad engage your consumers? v
  16. 16. the real impact of the iPad will be revealed in the where and when the device is used, not the what it replaces. • Its limitless mobility and connectivity will impact when and where users interact • Its highly interactive, visually rich, and expansive screen real estate will increase user frequency • Its location awareness – brands can not only target consumers in relevant places online, but relevant places in the world
  17. 17. this iPad expansion of the where and when users can interact will significantly increase social-networking behaviors. • It’s another vehicle for the ubiquity of access to the social media we demand • Mobile-social networking will be easier on the iPad vs a smartphone and just as accessible • How might iPad owners use it to connect socially? » Will they be tweeting from the couch while watching a TV show? » Is the iPad an “indoor” or “outdoor” social-networking device? » Will users share messages differently on an iPad then they would on a smartphone or PC? » Will we see the rise of social networks for iPad owners only?
  18. 18. What impact will it have on your digital strategy? Page 19
  19. 19. even though the iPad is not flash friendly, there are a number of steps brands can take to ensure an optimal site experience. If your site utilizes minimal Flash, two fairly simple actions can be taken: 1. Display an alternative client for the iPad since it does not have a Flash plug-in. This would display a series of images in lieu of a Flash video. • This is something the NY Times did not do for the iPad launch presentation. As a result, we saw the blue missing plug-in for the component that used Flash. They have since made their site “iPad ready”. 2. Detect the iPad and render HTML 5 with the video tag instead of Flash. This is our recommend and a relatively simple effort, which utilizes an if/then scenario: • If a user is running the site on an iPad/iPhone/iPod Touch, then the video is rendered as HTML 5 • If it is not using one of those devices, then the video is rendered in Flash
  20. 20. if your site is flash heavy, you’ll need to carefully consider your target and whether a rich experience is necessary for the iPad. This dilemma is akin to the 90’s when separate sites were built to support different browsers (e.g., IE and Netscape). This can be an expensive and exhausting approach. There are essentially two options.
  21. 21. 1. revamp your website in htMl 5 Careful consideration is needed to determine if this development is warranted. HTML 5 currently does not have near as wide a reach as Flash, which is the most widely accepted video platform. Flash is currently the best solution for its reach and acceptance. HTML 5 has significant potential and implications for online, but is still in its infancy and designing to it now could prove risky if targeting a broad audience since it could provide a fragmented experience. There are a few advantages though: • Garner buzz and PR by being one of the first to do so • Enhance SEO as well as the Mobile experience
  22. 22. 2. create a native iPad application This would more than likely be the better route should an iPad specific experience be desired.
  23. 23. What to consider if building a native app for the iPad • Experience • ROI
  24. 24. although apple did not release advance devices, that didn’t stop developers. • After the announcement of the iPad launch, app development spiked 185% • Before the April 3 launch, developers only had access to simulation software to build their apps, which did not give them the full experience • Developers though were willing to take the risk of their first few app versions being a little buggy rather than not launch simultaneously with the device • Not surprisingly, gaming apps seem to be leading the charge, followed by entertainment and social networking applications
  25. 25. the iPad will have to support a higher-quality app experience to meet lofty consumer expectations, which could prove costly. however, this will also present an opportunity for monetization.
  26. 26. We can learn from the monetization of apps on the iPhone for how to defer costs and even profit on apps for the iPad. • Set a price for download • charge a one-time fee for premium content that often includes future updates • “freemium” where consumers can download for free, but to watch videos or interact at a higher level you will need to purchase • include microtransactions where consumers pay for virtual goods, additional game levels and other bonuses • cross-sell with a brand partner inside an app to monetize more than one brand’s products or services • Sell premium advertising space to accompany the app, which is exactly what the magazine and newspaper industry has done for the iPad
  27. 27. Magazine and newspaper companies are looking to the iPad to help revitalize their industry. Many magazines and newspapers are using the iPad to generate revenue in different ways: • Standard rate: Time magazine has signed up Unilever, Toyota and Fidelity for single ad spot marketing agreements in each of the first eight issues ($200,000 a spot) • Sweetener: In Wired magazine, advertisers that agree to buy eight pages of ads in a single issue will be able to lace video and other extra features through the iPad version • Subscription: The Wall Street Journal has signed up several advertisers including Fed Ex and Coca-Cola at $100,000/mo and plan to sell their app for $17.99/mo • exclusive: The New York Times has sold exclusive rights to ads on its iPad editions for the first 60 days to Chase “Digital advertising has been a disappointment for many publishers, but with the iPad they feel they have a technology that best marries the splashy look and size of a full-page print ad with the cool interactive features of a digital ad—and the ability to count how many people saw it.” Source: Advertisers Gather Around as Publishers Tout Bells and Whistle’s of Apple’s iPad http://online.wsj.com/article/SB10001424052748704266504575141822475202814.html
  28. 28. how can iPad ads help you engage with consumers in new and innovative ways?
  29. 29. With the iPad, brands should move beyond the static notion of print ads and towards an interactive and immersive experience. On the iPad, ads should not be about eyeballs or clicks, but gesture, touch and a rich, engaging experience. Leveraging the features and technology of the iPad is key: • Multi-dimensional short films in high definition • 360 product interactions • Games that incorporate the accelerometer • eCommerce opportunities via “touch through” • Geotargeting of consumers with tailored ads that could then provide them directions to a brand’s location
  30. 30. Should your brand consider an iPad application?
  31. 31. here are a few questions to ask yourself On a scale of 1 to 5, 1 being Least Likely/No, 5 being Most Likely/Yes:
  32. 32. how did you fare? • If you scored between 36 or greater, you may be ready to head into iPad app development • If you scored between a 24 and 35, you may consider building an iPad app into marcom plans further down the line • If you scored less than24 , an iPad app may not be appropriate for your brand at this time
  33. 33. extra credit
  34. 34. additional resources Official Apple iPad Press Release http://www.apple.com/pr/library/2010/01/27ipad.html Steve Jobs Introduction video http://www.engadget.com/photos/the-apple-ipad-1/ ‘iPad Ready’ Websites http://www.apple.com/ipad/ready-for-ipad/ CNET News: All About the iPad FAQs http://news.cnet.com/8301-31021_3-10464984-260.html Round Up of the First Reviews http://www.pcworld.com/article/193104/apples_ipad_the_first_reviews_are_in.html Wired Magazine Experience on the iPad http://www.wired.com/epicenter/2010/02/the-wired-ipad-app-a-video-demonstration/ Mock Digital Ad Demonstration http://mashable.com/2010/03/17/awesome-ipad-digital-magazine-demo-video/ Twitter Search: #iPad
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A Tribal DDB point of view on the Apple iPad and what it means for your digital strategy. Some things to consider as you examine the iPad as a means of consumer experience and brand extension.


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