Apple Watch Ads Rumored To Have Location Targeting Capabilities

Although there isn’t yet an official release date for the Apple Watch, advertising vendors are already experimenting with a multitude of ways to place ads on users’ wrists in an attempt to ready themselves for the upcoming release of Apple’s wearable device.

Mobile ad exchange TapSense announced a product that the company says will allow marketers to place ads in applications that are created for the Apple Watch by third-party developers. The company explained in its announcement earlier this month that the technology is still being tested, with plans to develop new ad formats that are specific to the wearable device, including the ability to target those ads based on detailed location information.

“We are working in beta with both app developers and brands but have nothing to publicly announce right now,” explained TapSense CEO Ash Kumar. “Reception for this has been incredible and we can’t wait to see how location-based services add value to consumers’ in-app experiences.”

Additionally, mobile shopper marketing company inMarket stated that it can help retailers deliver information to consumers’ Apple Watch devices at stores using “beacon” technology. Beacons can be used to send information and offers to users based on their specific location within stores. According to inMarket, grocery chain Marsh Supermarkets is preparing to roll out beacon support for the Apple Watch across its stores nationwide, with a growing number of other retailers currently testing the technology as well.

However, some industry insiders are asking whether or not these developers and marketers are jumping the gun on these plans. Apple has released the WatchKit Software Development Kit (SDK), which allows developers to build applications tailored to the Apple Watch, and app developers could use it to insert ads into those apps. However, any Watch application will be subject to Apple’s strict approval process, and the SDK itself is still in beta and subject to change. Although the tiny Apple Watch screen can be seen as a highly prized piece of advertising real estate, there’s a good likelihood that Apple won’t allow its high-end device to be overcrowded by ads that could detract from the overall user experience. As an example, it’s worth considering Apple’s HealthKit fitness app. Apple’s app-store guidelines explicitly bans apps from using user data gathered from the HealthKit API for ads. This concept could potentially be extended to apps developed for the Apple Watch.

Another important element to consider is Apple’s increasing focus and investment in its own advertising platform, iAd. The company recently announced that it was partnering with numerous tech vendors to bring programmatic, or automated, ad buying to its iAd platform. These vendors include Rubicon Project, MediaMath, AdRoll, Adelphic, Accordant Media, Get It Mobile and The Trade Desk. It’s possible that the company will make Apple Watch ads exclusive to the iAd platform and the aforementioned demand-side platforms and ad tech companies. Truly, it’s too early to tell, and Apple hasn’t released any details about advertising on the Apple Watch.

One thing that’s clear is that the buzz around the Apple Watch is massive and will only increase as the release date gets closer and is eventually announced. Although an official release date has not been announced, 9to5Mac’s Mark Gurman has reported that sources familiar with Apple’s retail plans say that the Apple Watch will be released by the end of March. Marketers are keeping a close eye on these developments in anticipation of its release and will watch for any official information about advertising capabilities and restrictions on the device.