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Yahoo CEO predicts demise of Apple's iAd mobile ad network

post #1 of 101
9/16/10 at 7:12am
Thread Starter 
Yahoo Chief Executve Carol Bartz said she thinks Apple's control over iAd will drive advertisers away, causing the mobile advertising network to "fall apart."

Bartz spoke with Reuters about the direction her company is taking, as Yahoo looks to increase its advertising revenue from its search business. In addition, the company is looking toward the growing mobile advertising market, where it hopes to compete with Google and Apple.

In the interview, Bartz took the opportunity to comment on Apple's newly launched iAd mobile ad network, which debuted in July. The Yahoo CEO predicted that Apple will fail because advertisers won't cooperate with the iPhone maker's policies.

"That's going to fall apart for them," Bartz reportedly said of iAd. "Advertisers are not going to have that type of control over them. Apple wants total control over those ads."

Bartz's comments likely stem from comments made by advertisers to The Wall Street Journal in August. Early customers of iAd were said to be experiencing delays in launching their advertisements because Apple has "kept tight control on the creative aspects of ad-making, something advertisers aren't used to."

The report indicated that mobile ads took about eight to 10 weeks to launch, which is much longer than the timeframe for other mobile ads. But Apple has taken such control because it believes the richly interactive ad experiences, which provide essentially an "app within an app," will provide a superior experience when compared to other services, which force users to leave the application and launch a browser.

However, some early adopters to iAd -- including Nissan and Unilver -- have painted a positive picture of Apple's fledgling service. Advertisers indicated that users are five times more likely to select Apple's interactive advertisements than they are a traditional online display ad.
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post #2 of 101
9/16/10 at 7:22am
Maybe she’s right. Maybe this type of marketing is not something Apple can do well, despite their legendary marketing in other respects.

Personally, I see a lot of opportunity here for quality ads versus the ads that have plagued the internet for decades.

I also can’t help but think of all the new areas of business that Apple has entered into with people stating that Apple can’t possibly succeed because they are doing things differently than those that came before them. This makes me favour on Apple’s side of things so I’ll be keeping my Apple stock for another day.
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post #3 of 101
9/16/10 at 7:26am
Quote:
Originally Posted by solipsism View Post

Maybe he’s right. Maybe this type of marketing is not something Apple can do well, despite their legendary marketing in other respects..

She, Carol is a woman. And judging on how Yahoo is doing as a company, I am not very inclined to accept what she is saying. Maybe she is right, but there is just as much of a chance that she is wrong. People have made tons of declarations about Apple before - many of them them have been shown to be incorrect.
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post #4 of 101
9/16/10 at 7:26am
In today's news: One competitor predicts demise of another competitor. Film at 11.

In Other news: The sun rose in the east today.

The state is nothing more than a criminal gang writ large.

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The state is nothing more than a criminal gang writ large.

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post #5 of 101
9/16/10 at 7:29am
Their control over the App Store has not destroyed it: there have been a few high profile defections but that's all. I guess it all depends on the type of control: are they just stopping annoying or tasteless ads, or is it more than that?
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post #6 of 101
9/16/10 at 7:31am
Quote:
Originally Posted by AppleInsider View Post


The report indicated that mobile ads took about eight to 10 weeks to launch, which is much longer than the timeframe for other mobile ads. But Apple has taken such control because it believes the richly interactive ad experiences, which provide essentially an "app within an app," will provide a superior experience when compared to other services, which force users to leave the application and launch a browser.

.

This is because your typical mobile ad consists of a picture of a juiced male prostitute pushing Ripped Fuel. I anticipate that Apples entry into the ad field will raise that bar.
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post #7 of 101
9/16/10 at 7:31am
It's weird that Apple had to come up with something like iAd instead of ad-focused companies like Yahoo.

Just like it took Grand Central and Google Voice to make our phones better - while big telecom keeps charging outrageous rates for calling features that haven't been updated in years.

When a company like Yahoo gets caught asleep at the wheel they put down whatever the change is - until they can deploy their own version.
Emailing video from iPhone to Apple TV , sort of..
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Emailing video from iPhone to Apple TV , sort of..
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post #8 of 101
9/16/10 at 7:31am
Quote:
Originally Posted by diddy View Post

She, Carol is a woman. And judging on how Yahoo is doing as a company, I am not very inclined to accept what she is saying. Maybe she is right, but there is just as much of a chance that she is wrong. People have made tons of declarations about Apple before - many of them them have been shown to be incorrect.

What is their standing now (roughly)?
  1. 1/3 of all PC profits.
  2. 1/2 of all handset profits.
  3. Most profitable retailer per sq. foot.
  4. Do I even have to mention their PMP and tablet profits for the market?
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post #9 of 101
9/16/10 at 7:35am
I'm not saying she is right or wrong but I do think that she has got a pair of brass ones. I'm frankly surprised that she took a shot at Apple who she should be getting more cozy with rather than distant.

Yahoo is still a great company but they were hemorrhaging talent and money for so long that I don't know if they'll ever recover fully. The deal with Micro$oft looks more like a long-term takeover rather than a simple advertising deal. Maybe I'm wrong but I see Microsoft pilfering through Yahoo for their technology and talent, and leaving a dry carcass behind after the deal is over. Microsoft is not a partner, they never have been good at that relationship.

Personally, I'm on Yahoo and even Micro$oft's side over Google--I think they've been doing a lot of underhanded cr/p lately.
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post #10 of 101
9/16/10 at 7:39am
God forbid someone take the current state of today's crappy online advertising and give it some pep.

Even if Apple is wrong, it's annoying to read other companies talking what their competitors should and shouldn't do when they're not doing jack-shit themselves.
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post #11 of 101
9/16/10 at 7:40am
Quote:
Originally Posted by JuanGuapo View Post

Personally, I'm on Yahoo and even Micro$oft's side over Google--I think they've been doing a lot of underhanded cr/p lately.

If people are so worried about Google then stop using Gmail and stop using their search, and watch them die in short order.

But I don't think that will happen. I for one just love Google Maps. I just browse around the world for the fun of it.
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post #12 of 101
9/16/10 at 7:42am
Don't think she will be making an appearance at any SJ keynotes this millennium.
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post #13 of 101
9/16/10 at 7:50am
Quote:
Originally Posted by macinthe408 View Post

God forbid someone take the current state of today's crappy online advertising and give it some pep.

Even if Apple is wrong, it's annoying to read other companies talking what their competitors should and shouldn't do when they're not doing jack-shit themselves.

Jobs is also one to criticize but there is a huge difference in the focus of these criticisms. The way it seems to me is it sounds like companies are criticizing Apple directly (perhaps they are scared or in denial) or they the very notion of change seems outlandish (just look at the decade of failed tablet sales), but Jobs attacks seems to be on the business model. He is always very clear in what he thinks is wrong and how to change it. Im sure there is a lot of hubris in these open letters as these could be used as templates for others to follow suit even faster, but they typically dont until after Apple bests them. Its interesting that what was thought to be Jobs legacy and ultimate failure, NeXT, turned out to the foundation and future of a resurrected Apple. Love him or hate him, you cant deny that Jobs has had way too many financial and technological successes that have altered the worlds culture to ignore iAds because a CEO from a languishing Yahoo pooh-poohs it
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post #14 of 101
9/16/10 at 7:50am
No client wants to cede control to a contractor that isn't very good. Most clients would be happy to cede control to a contractor that does a great job. End of story.
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post #15 of 101
9/16/10 at 7:52am
Quote:
Originally Posted by diddy View Post

She, Carol is a woman. And judging on how Yahoo is doing as a company, I am not very inclined to accept what she is saying. Maybe she is right, but there is just as much of a chance that she is wrong. People have made tons of declarations about Apple before - many of them them have been shown to be incorrect.

What the fuck does being a woman have to do with anything being discussed on this post?
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post #16 of 101
9/16/10 at 7:53am
Didn't someone also say that Apple should close up shop and give shares back to shareholders? Now Apple is mopping the floor with everyone.

This will be her famous last words. Too bad that she said it out loud and on record. If I had to guess, we will hear about this again and she will look dumb.
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post #17 of 101
9/16/10 at 7:53am
You really have to love executives making self-serving prophecies. The question is, why do the media even bother reporting this nonsense as meaningful. If the head of Yahoo said, "Apple is going to kick our butts with iAd," that would be newsworthy.
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post #18 of 101
9/16/10 at 7:55am
Quote:
Originally Posted by JuanGuapo View Post

I'm not saying she is right or wrong but I do think that she has got a pair of brass ones.

I don't think it's so much cajones as it is ignorance of the iAd value proposition, or more likely, a desire for any kind of media attention and some appearance of relevance for Yahoo.
Undoubtedly, some advertisers/agencies will avoid iAd. But it has already shown that it is incredibly valuable to many of the most important clients (half the market overnight?!!) and it will not be going away, ever.

As SJ might say to her, "What have you created?"
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post #19 of 101
9/16/10 at 7:56am
Quote:
Originally Posted by diddy View Post

She, Carol is a woman...

What in the world does that have to do with anything?
Love her or hate her, Carol has more balls than just about anyone in the industry.
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post #20 of 101
9/16/10 at 7:57am
The same was said about the iPod, iPhone, iTunes, iPad.. And a lot of people have been humiliated for underestimating..
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post #21 of 101
9/16/10 at 7:59am
Quote:
Originally Posted by tundraboy View Post

What the fuck does being a woman have to do with anything being discussed on this post?

In the post diddy replied to, my post, I erroneously referred to Bartz as he.
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post #22 of 101
9/16/10 at 8:00am
Quote:
Originally Posted by tundraboy View Post

What the fuck does being a woman have to do with anything being discussed on this post?

Hey Mr. Self-righteous, read the last line of the first post. (the line under the sig.)
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post #23 of 101
9/16/10 at 8:01am
Quote:
Originally Posted by solipsism View Post

Personally, I see a lot of opportunity here for quality ads verse [sic] the ads that have plagued the internet for decades.

A minor point, but its surely stretching things a bit to talk about any kind of advertising plaguing the internet for decades, when commercial activity was only allowed for the first time in 1992 (less than two decades ago). (Im not saying it never happened before then, of course, but advertising is endemic to todays web, in a way that it never was to the very early web, or to Usenet, say.)
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post #24 of 101
9/16/10 at 8:01am
I think Apple is controlling iAds right now just to set the standard. Eventually they'll loosen up..
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post #25 of 101
9/16/10 at 8:02am
I tried the Klondike iAd that showed up in the New York Times app. It loaded slowly (on WiFi on an iPhone 4) and once it did, it still seemed slow changing between things. I got bored and left.

If it goes somewhere I'll be impressed, but as with all other online ads, I'll let other people click them.
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post #26 of 101
9/16/10 at 8:02am
Is this an onion story? I think that Yahoo has not been on the ball in search (hint advertising in search) for a long time now. Apple is just starting out and has a lot of time to tweak how they do business, and until then people can continue to use AdSense. I like where iAd is going - quality ads inside apps, I think that is a very good idea for a mobile device.
--SHEFFmachine out
Da Bears!
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--SHEFFmachine out
Da Bears!
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post #27 of 101
9/16/10 at 8:04am
Quote:
Originally Posted by tundraboy View Post

What the fuck does being a woman have to do with anything being discussed on this post?

The post was correcting the previous one that called Carol a "he". I doubt it was a comment on a particular gender's abilities. Slow your roll and follow the thread.
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post #28 of 101
9/16/10 at 8:06am
Quote:
Originally Posted by tundraboy View Post

What the fuck does being a woman have to do with anything being discussed on this post?

Well, it has everything to do with the fact that you can't read. The first poster referred to Carol as a HE.
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post #29 of 101
9/16/10 at 8:06am
Quote:
Originally Posted by anich View Post

A minor point, but its surely stretching things a bit to talk about any kind of advertising plaguing the internet for decades, when commercial activity was only allowed for the first time in 1992 (less than two decades ago). (Im not saying it never happened before then, of course, but advertising is endemic to todays web, in a way that it never was to the very early web, or to Usenet, say.)

I thought about that, but A) one decade is a major rounding down, B) I do remember advertisements (though unlike today) throughout bulletin boards, and C) I couldnt think of a better way to state it, so I rounded. But youre right saying "plagued for decades" is definitely hyperbole.


Quote:
Originally Posted by Wurm5150 View Post

I think Apple is controlling iAds right now just to set the standard. Eventually they'll loosen up..

Much easier to loosen later than to tighten later.
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post #30 of 101
9/16/10 at 8:06am
Quote:
Originally Posted by GQB View Post

What in the world does that have to do with anything?
Love her or hate her, Carol has more balls than just about anyone in the industry.

She's got balls? So is she a tranny?
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post #31 of 101
9/16/10 at 8:07am
Hey they didn't report the whole story:

"Yahoo CEO predicts demise of Apple's iAd mobile ad network while sharing a moca with Michael Dell".

circa 1997 and an executive IT event Dell said, "What would I do (to save Apple)? I'd shut it down and give the money back to the shareholders,".

Now ... had he Instead of making a uncalled for dig at Apple, he invested $1m in cash on that very same day... Well lets just see.

Oct 6th 1997 (date of Dells quote) - AAPL Stock: Closed at 5.45 (split adjusted). So, $1 M in cash (pocket change for Michael at that time) would have bought apx 183,000 shares 183,486 to be exact... Now lets just see... 183,486x272.00 (todays AAPL mid-day price) oh lets just call it 50 million dollars.

While hindsight it always 20/20 ... that's GOTTA hurt!
Apple Fanboy: Anyone who started liking Apple before I did!
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post #32 of 101
9/16/10 at 8:08am
Quote:
Originally Posted by macdaddykane View Post

The post was correcting the previous one that called Carol a "he". I doubt it was a comment on a particular gender's abilities. Slow your roll and follow the thread.

Quote:
Originally Posted by sip View Post

Well, it has everything to do with the fact that you can't read. The first poster referred to Carol as a HE.

In tundraboys defense my edit be missed. I didnt exactly use a complete sentence in the edit reason.
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post #33 of 101
9/16/10 at 8:11am
Quote:
Originally Posted by bobrk View Post

I tried the Klondike iAd that showed up in the New York Times app. It loaded slowly (on WiFi on an iPhone 4) and once it did, it still seemed slow changing between things. I got bored and left.

If it goes somewhere I'll be impressed, but as with all other online ads, I'll let other people click them.

I've seen the Klondike iAd. It did load a bit slow but after that was a zip and I was on 3G. The videos played smoothly. I like the ad, happened to be in the mood for a dessert, and I ended up getting a Klondike bar.
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post #34 of 101
9/16/10 at 8:14am
Quote:
Originally Posted by macdaddykane View Post

The post was correcting the previous one that called Carol a "he". I doubt it was a comment on a particular gender's abilities. Slow your roll and follow the thread.

That is the exact purpose of the comment - it was correcting the post about her biology - it was not a comment about women in general.

Just so it comes from the horses mouth - the OP said that Carol was a he when in fact the CEO of Yahoo is a woman. That is all. Snuff out those torches and lower the pitchforks. Nothing to see here.
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post #35 of 101
9/16/10 at 8:14am
Quote:
Originally Posted by diddy View Post

She, Carol is a woman. And judging on how Yahoo is doing as a company, I am not very inclined to accept what she is saying. Maybe she is right, but there is just as much of a chance that she is wrong. People have made tons of declarations about Apple before - many of them them have been shown to be incorrect.

She is right, based on an assumption that Apple will never give up control on the creation of ads.

That however is likely a bad assumption since we've seen this game with other things (apps, itunes lp etc) and Apple always has a period of tight control while bugs get worked out and tools are made and then they open the game up

Also for everyone commenting on 'online ads' sorry but no. This is just about mobile ads. Apple hasn't touched online (yet). So we've still got the crappy ads there to deal with. plus the video embeds. sigh
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post #36 of 101
9/16/10 at 8:15am
These comments coming from the CEO who couldn't predict Google kicking their ass when Yahoo was king? Yeah, I'm not taking her words to heart.
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post #37 of 101
9/16/10 at 8:18am
I think Bartz is completely right because Apple is so stubborn and stupid that they won't adjust their iAd strategy even if they see that advertisers are totally abandoning it. Because that's how Apple has succeeded --by being completely oblivious and unresponsive to the demands and preferences of their customers.

Really, this is why one CEO after another comes off sounding like an idiot whenever they predict Apple's demise. If they think Apple is making a mistake, for some inexplicable reason they assume that Apple will not do anything to correct that mistake (if it turns out to be a mistake). When in fact Apple is very nimble and quick to address any problems that arise.

Because unlike Yahoo and Microsoft, when Apple identifies a problem and sets a goal, the whole company falls in line and works to attain those goals. Apple doesn't have petty empire-builders in its organization like Microsoft and I suspect, Yahoo has. We all know the type, those small-minded department and division heads who will secretly undermine the company's goals if they feel it will result in their losing turf.

When you see a company going through a slow-motion train wreck, where the problem is so obvious and the solution so straightforward and yet the company can't seem to help itself, it's usually because management is beset by these petty empire-builders who would rather let the company die a slow death than give up their little internal fiefdoms.
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post #38 of 101
9/16/10 at 8:21am
Quote:
Originally Posted by solipsism View Post

In tundraboys defense my edit be missed. I didnt exactly use a complete sentence in the edit reason.

Sorry then, my bad.
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post #39 of 101
9/16/10 at 8:23am
Quote:
Originally Posted by AppleInsider View Post

Yahoo Chief Executve Carol Bartz said she thinks Apple's control over iAd will drive advertisers away, causing the mobile advertising network to "fall apart."

Bartz spoke with Reuters about the direction her company is taking, as Yahoo looks to increase its advertising revenue from its search business. In addition, the company is looking toward the growing mobile advertising market, where it hopes to compete with Google and Apple.

In the interview, Bartz took the opportunity to comment on Apple's newly launched iAd mobile ad network, which debuted in July. The Yahoo CEO predicted that Apple will fail because advertisers won't cooperate with the iPhone maker's policies.

"That's going to fall apart for them," Bartz reportedly said of iAd. "Advertisers are not going to have that type of control over them. Apple wants total control over those ads."

Bartz's comments likely stem from comments made by advertisers to The Wall Street Journal in August. Early customers of iAd were said to be experiencing delays in launching their advertisements because Apple has "kept tight control on the creative aspects of ad-making, something advertisers aren't used to."

The report indicated that mobile ads took about eight to 10 weeks to launch, which is much longer than the timeframe for other mobile ads. But Apple has taken such control because it believes the richly interactive ad experiences, which provide essentially an "app within an app," will provide a superior experience when compared to other services, which force users to leave the application and launch a browser.

However, some early adopters to iAd -- including Nissan and Unilver -- have painted a positive picture of Apple's fledgling service. Advertisers indicated that users are five times more likely to select Apple's interactive advertisements than they are a traditional online display ad.

good thing she is putting that super-prediction power to use at yahoo. its what has made them the top company....oh.....wait.....
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post #40 of 101
9/16/10 at 8:24am
She's dead wrong. Advertising professionals all use macs. Advertising professionals all want the most standardized branded environment. Advertisers want statistics. Advertisers want in App ads. Advertisers want micro-targeted, contextual ads. iAd delivers exactly what we want.

To do an online ad campaign we currently need to make up to 10 versions of the same Flash ad to work with different ad servers for different publications, different size requirements, and several different click tracking versions with different embeds. This extra production and management is very expensive and also leads to difficulty doing statistical analysis as the different ad serving platforms provide data in different formats.

Beyond the production savings and the huge, affluent audience, iAd also allows consumers to choose to let the ad take over the whole window and provide a totally immersive branding experience. This is what we've been looking for for years, and iAd makes it smooth and not intrusive to the end user.

From the media planning standpoint, iAd is a no brainer - it's totally stats and demographically driven and give the ability to micro-target, so it is HIGHLY efficient.

Bartz is talking out her rear - apps are increasingly being used to access information versus search engines, so the Yahoo/MS model will trend downwards as apps are obviously growing exponentially.

Quote:
Originally Posted by solipsism View Post

Maybe shes right. Maybe this type of marketing is not something Apple can do well, despite their legendary marketing in other respects.

Personally, I see a lot of opportunity here for quality ads verse the ads that have plagued the internet for decades.

I also cant help but think of all the new areas of business that Apple has entered into with people stating that Apple cant possibly succeed because they are doing things differently than those that came before them. This makes me favour on Apples side of things so Ill be keeping my Apple stock for another day.
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