Tue Jul, 2011 by Derek Mehraban
Flipboard has spent the past several months building an impressive user base. The application aggregates news and then presents in a reading friendly magazine-like format for the iPad. Until recently it had lacked a revenue model, but as of Monday it has begun displaying advertisements. For now the ads are limited to American Express but that limitation will not last for long.
There are two aspects of this development that are good news for the digital agency. The first is obvious: the digital agency now has a new publisher for advertisements once the advertising possibility is opened beyond American Express. The second, and more important, aspect of this change is the widening growth of application advertising. Not only does this signify that app developers are interested and looking for advertising revenue, but it also helps condition the user to accept advertisements. The easy analogy is the acceptance of intrusive advertising in TV broadcasts. No viewer likes the model, but users are conditioned to accept it.