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.

2. 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

3. What is the iPad and
how much does it cost?
Page 3

4. 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

5. 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)

6. 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

7. how will it be used?
Page 7

8. 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

9. 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

10. 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

11. how pervasive could
the iPad become?
Page 11

12. 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?

13. 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.

14. Who will use the iPad?
v

15. 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)

16. how will the iPad engage
your consumers?
v

17. 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

18. 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?

19. What impact will it have
on your digital strategy?
Page 19

20. 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

21. 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.

22. 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

23. 2. create a native iPad application
This would more than likely be the better route should
an iPad specific experience be desired.

24. What to consider if building
a native app for the iPad
• Experience • ROI

25. 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

26. 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.

27. 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

28. 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

29. how can iPad ads
help you engage with
consumers in new
and innovative ways?

30. 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

31. Should your brand
consider an iPad
application?

32. 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:

33. 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

34. extra credit

35. 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