Apple’s iAds faces some early challenges
Aug 17, 2010
iAds to account for 48% of the mobile advertising market
How Apple is planning to stay ahead of the game
Tech giant and advertising innovator Apple is already facing a number of challenges with its iAds platform, with many campaigns experiencing delays.
Advertisers and marketers are both still learning how to master the new platform as they also come up against Apple’s tight controls.
Since launching its iAd mobile advertising service on July 1, Apple has been slow to roll it out, according to a new report in the WSJ.com.
Of the 17 launch partners Apple named for iAds – which also included Citigroup and Walt Disney – only Unilever and Nissan had iAd campaigns for much of July.
The remaining 15 are said to still be in the planning stages of their iAds campaigns.
Part of the reason some marketers are experiencing delays in getting their iAds to market is that Apple has kept tight control on the creative aspects of ad-making, something advertisers aren’t used to, says the WSJ.com.
Such tight controls have led to one client – Chanel – apparently dropping any plans at all to use the new mobile advertising platform. Meanwhile, Citigroup is said by the paper to be taking a “phased approach” to its creative on the iAds platform.
Announced by CEO Steve Jobs to much fanfare back in April, iAds delivers interactive ads inside iPhone apps without users having to leave or close the app they are currently using.
The platform provides a way for Apple to make money from free apps. Developers—who Apple said receive 60% of revenue from the ads—also have more incentive to focus on the App Store, rather than other app marketplaces run by rivals such as Google.
Apple said in early June that it had iAd commitments from advertisers for 2010 totalling more than $60 million. Jobs also said that he expects iAds to account for 48% of the total mobile advertising market.