The iPhone is emerging as one of the leading mobile advertising platforms because of its ability to display rich media applications, like video, according to Eden Zoller, principal analyst at Ovum. He says the superior user experience is leading consumers to download—and in some cases even buy—branded applications because they are not considered ads.

Perhaps, the best example is Kraft’s iFood Assistant application, which comes loaded with 7,000 recipes and allows users to create shopping lists. The application has made it into the top 100 applications—despite the fact that it costs 99 cents. Zoller: “The popularity of branded iPhone applications suggests that people do not see them as advertising is one of the ideal outcomes for any type of advertising…People are in effect paying Kraft to advertise to them, except they do not see it this way.”

Obviously, the approach can backfire, too. While reviews for the Kraft app are positive, Audi’s A4 Driving Challenge game has struggled. Its first version received a ton of negative feedback, which led the company to release an updated version. While many players said the improvements helped, it currently has a 2 1/2 star rating, and the top reviewer of the moment writes: “I’m never buying an Audi because of this game.” Other companies that have launched branded applications include: Volkswagen, BMW, Porsche, Carling, Heineken, Charmin, Nike, Gap, Target, Coke, Zippo Lighters, Universal Pictures and Betty Crocker.

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