Wed May, 2011 by Derek Mehraban
There is a new mobile app that has the potential to drastically alter the profitability of advertising on apps, and not necessarily in a good way. Do@ is a new iPhone app that allows a user to conduct mobile searches from within other apps. If a user searches for ‘lasagna’ within Do@, then a search is conducted within other mobile apps, even if they are not installed on the users phone.
Photo: PC Mag
This can negatively impact digital agencies in a couple of ways. Advertisements that are normally displayed on apps will not be seen. Do@ will return results from Urban Spoon, for example, without displaying the advertisements that run on Urban Spoon. Do@ also has the ability to limit the number of people who install Urban Spoon on their smartphones. The digital agency that does use Urban Spoon as a platform for a client’s firm will also see diminished results as Do@ will combine Urban Spoon’s results with search results from other apps.
All of this can be preempted if Do@ ends up offering advertising space. It is also possible that Do@ loses an ability to cooperate with other apps. For now Do@ is only available on iPhones, but plans for an iPad and Android versions are in the works. If Do@ does expand the apps it searches then the digital agency must engage it to remain relevant in the mobile app advertising space.