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Adidas cancels $10M iAd contract due to Apple's control - rumor

post #1 of 61
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Shoemaker Adidas has reportedly canceled a $10 million deal for mobile advertisements on Apple's iAd service, because the iPhone maker has allegedly exerted too much control over the process.

Citing two mobile industry executives, Silicon Alley Insider has claimed that Adidas pulled its campaign because "Apple CEO Steve Jobs was being too much of a control freak." Adidas is rumored to have a creative concept rejected three times, prompting the move.

"In addition to Apple's unusual control over the ad creation process, advertisers complain about the lack of control over visibility into where their ads appear, lack of third-party ad serving tools, and other issues," the report said. "Apple plans to open up the process once its' more comfortable with the program, but it appears some advertisers have lost their patience."

The report largely reaffirms what The Wall Street Journal claimed in August, when the paper said that advertisers have been frustrated over Apple's "tight control over the creative process" for iAds. It was said that Apple's mobile advertisements take between eight and 10 weeks from start to finish, and Apple, which builds the ads itself, was taking two weeks longer than advertisers expected.

It was noted that Chanel, one of the launch partners with iAd, decided to cancel its campaign. If true, the departure of Adidas would be the second high-profile customer lost.

iAds provide richly interactive ad experiences inside developers' apps, providing them a 60 percent cut of the advertising revenue. The hope is the advertisements -- noted by the iAd logo in the corner -- will be more compelling to users, because they don't have to leave their app and launch a browser to view them.

Competitors have been quick to highlight Apple's unconventional approach with iAds. In September, Yahoo CEO Carol Bartz said she thinks Apple's tight control will drive advertisers away and cause the fledgling service to "fall apart."
post #2 of 61
Apple evidently puts out insanely great products and in order to do that it can take extra time and effort. It is understandable that some companies may not wish to put in such an effort even at the cost inferior results.

I believe that if every iAd advertisement is insanely great then Apple will benefit in the long term when advertisers know their chance of a successful ad campaign on iAds is very high.

I for one actually look for iAd advertisement to see them because I know that they are very cool. They are like the best Super Bowl ads. Not only do you watch them you talk to you friends about them.

If Adidas does not want to put in the time and effort for an awesome ad then so be it. I will gladly watch Nike ads and buy their products.

Are there any iAds for "Le Coq Sportif"? Better start using iAds...

Time will tell.
post #3 of 61
I actually think Chanel would have been one of the brands that would have benefitted most. They could have really done well in my opinion.
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post #4 of 61
Quote:
Originally Posted by AppleInsider View Post

Competitors have been quick to highlight Apple's unconventional approach with iAds. In September, Yahoo CEO Carol Bartz said she thinks Apple's tight control will drive advertisers away and cause the fledgling service to "fall apart."

I never know where Yahoo is with ads. I tried them back when they had just switched to the Overture service that they bought & renamed. It wasn't any good, trying to find basic features was a job in chasing your own tail, with a useless help system and no way to contact them with a question. I thought they were now using Microsoft's ad network, but I can't find that source anymore.
post #5 of 61
Quote:
Originally Posted by AppleSauce007 View Post

Apple evidently puts out insanely great products and in order to do that it can take extra time and effort. It is understandable that some companies may not wish to put in such an effort even at the cost inferior results.

I believe that if every iAd advertisement is insanely then Apple will benefit in the long term when advertisers know their chance of a successful ad on iAds is very high.

I for one actually look for iAd advertisement to see them because I know that they are very cool. They are like Super Bowl ads.

If Adidas does not want to put in the time and effort for an awesome ad then so be it. I will gladly watch Nike ads and buy their products.

Are there any iAds for "Le Coq Sportif"? Better start using iAds...

Time will tell.

Well said. Apple should hold out for Tiffany-level companies anyway.
post #6 of 61
Unfortunately this isn’t telling if iAds is widely profitable or not for Apple. There are bound to be some unhappy customers with Apple doing this differently. When have there not been with an Apple product? Yet they still keep making money hand over fist.
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post #7 of 61
Quote:
Originally Posted by knwbuddy View Post

Two steps forward, and one step back. They will figure this stuff out eventually, and will do better in the future.

That still better than everyone else taking two steps back and then another step back.
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post #8 of 61
Quote:
BusinessInsider admits they don't know the exact reasons for the rejections ("to be sure, perhaps Adidas had really lame ideas, and Apple was right to reject them.")

Until it's known the reasons for the rejection it's hard to say much. It goes to show it isn't about money for Apple. Who wants to lose $10M really? But then again they like television, websites, etc. have the right to reject ads they deem inappropriate or unsatisfactory.

Apple is a control freak which is both good and bad.
post #9 of 61
Sounds like FUD, I doubt any one at Adidas would be that insulting about the CEO of Apple not to mention, using the exact phrase about SJ the trolls all use. That in of itself makes me highly suspicious. There may be a grain of truth that has been blown up.

Ok from MacRumors.

"Adidas supposedly pulled its $10+ million ad campaign from the iAd program because Apple CEO Steve Jobs was being too much of a control freak. According to one industry exec, Adidas decided to cancel its iAds after Apple rejected its creative concept for the third time."

So I guess it is true.
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post #10 of 61
It's because Steve wears New Balance...
post #11 of 61
I think Steve Jobs was most concerned about all the nudity in the Adidas ad.
post #12 of 61
Quote:
Originally Posted by Postulant View Post

It's because Steve wears New Balance...

That reminds me to ask ... I was wondering if Nike already have an iAd deal, they having been close to Apple for a while.
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post #13 of 61
Quote:
Originally Posted by knwbuddy View Post

Wow. That hurts.

Two steps forward and one step back, it looks like.

Actually no. Because everyone with any clue knows that Jobs is and has always been a control freak. It is actually one of the items in the plus column -- Jobs won't release something he thinks is crap. And they likely knew from the start that at this phase of the game, Apple would be very strict about the ads, ie 'control freaks'. And yet they signed up to play anyway.

I suspect that the issue is not as out there as it is being played. After all, it is standard in the ad game to toss out a dozen or more ideas a week and have them rejected for a handful of rounds until someone gets the brilliant idea.

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post #14 of 61
Quote:
Originally Posted by charlituna View Post

Actually no. Because everyone with any clue knows that Jobs is and has always been a control freak. It is actually one of the items in the plus column -- Jobs won't release something he thinks is crap. And they likely knew from the start that at this phase of the game, Apple would be very strict about the ads, ie 'control freaks'. And yet they signed up to play anyway.

I suspect that the issue is not as out there as it is being played. After all, it is standard in the ad game to toss out a dozen or more ideas a week and have them rejected for a handful of rounds until someone gets the brilliant idea.

This opens the door for Android deployers to say "Hey, bring your crappy ad here, we have lower standards than Apple"
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post #15 of 61
Quote:
Originally Posted by digitalclips View Post

That reminds me to ask ... I was wondering if Nike already have an iAd deal, they having been close to Apple for a while.

I have to wonder how close that relationship is now. The Nike+ app for v4.x has yet to work right, even with the 4.2 betas. Itll cut out at an apparently random time so your distance and times are way off.

Nike says they have no control over the Nike+ app (which makes sense since its built into iOS) and Apple doesnt respond on the issue (as usual lol).

The work around is to but Nike+GPS or one of the other apps that bypass the wireless Nike+ device. The accelerometer and GPS built into the iPhone is pretty accurate for this sort of thing and Nike+GPS makes a pretty slick image for you of your course, with the online version showing you elevation along your route which has helped determine why I was faster or slower in certain areas.
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post #16 of 61
Quote:
Originally Posted by digitalclips View Post

Sounds like FUD, I doubt any one at Adidas would be that insulting about the CEO of Apple not to mention, using the exact phrase about SJ the trolls all use. That in of itself makes me highly suspicious. There may be a grain of truth that has been blown up.

Agreed. Over at MacRumors the "spin" is slightly different. You just never know with these stories - the throwing stars story was the icing on the cake.
post #17 of 61
I agree with most of the contents here. It is taking too long. Don't mind the control bit if it means a better experience and outcome than most ads on any medium but I still yet to see one live in here in the UK (iAds) although that might be due to the choice of apps that I have on my devices.

If news reporting about this kind of negatives on Apple (losing $10m and big name account) and yet Apple manage to past them with kind of 'on your face suckers' profits and all that then fool to them but that need to be quick. Quick FGS...
post #18 of 61
Quote:
Originally Posted by knwbuddy View Post

You are a true believer and a true blue fan. And remember, the more ads you watch, the more money there will be to bring you great new apps! Even better, call the advertiser and tell them you bought a new car or whatever because you saw the iAd. You can really leverage your efforts and satisfaction by doing that.

A "reverse boycott" is in order! We all need to stock up on anything and everything we see in iAds, and make it clear to every store manager at every store that we are there, and we are buying, because of their sponsorship of iOS apps.

Watching the ads helps the bottom line at the ends of the intertubes, but real fans need to do much more, and buy the products in mass quantities. And let the advertisers know what we are doing!

Or not... Sorry to be sarcastic, but I can't really imagine going out of my way to see ads or interact with ads. Especially not just because of the advertising agency that produced them.

I really have no idea if any of the banner ads I've seen on my iPhone are iAds or not. I never focus on the ads. To each his own, I guess.

You lost me at "true blue fan".
post #19 of 61
Quote:
Originally Posted by AppleInsider View Post

...Competitors have been quick to highlight Apple's unconventional approach with iAds. In September, Yahoo CEO Carol Bartz said she thinks Apple's tight control will drive advertisers away and cause the fledgling service to "fall apart."

Well, let's see...

Google bought AdMob for $750 million and Apple bought Quattro Wireless for $275 million.

And now it has been reported that they will have about the same mobile ad market share.
http://www.businessweek.com/magazine...8040729659.htm

What is Carol Bartz smoking?

Time will tell.
post #20 of 61
Quote:
Originally Posted by AppleSauce007 View Post

Well, let's see...

Google bought AdMob for $750 million and Apple bought Quattro Wireless for $275 million.

And now it has been reported that they will have about the same mobile market share.
http://www.businessweek.com/magazine...8040729659.htm

What is Carol Bartz smoking?

Time will tell.

You make a good point, but marketshare in and of itself doesnt tell us anything about how these affect each companys bottom line.

We know that Apple is starting out with about a half-billion dollar lead by virtue of buying a much cheaper company. What did Google get for that additional cost?

We also know that AdMob can show up on iOS devices in the browser, which I assume is part of the mobile marketshare count. We also know that Apple is only using iAds for their apps and nothing else at this time, but could grow the brand further as its built on open standards.

Finally, we know that Apple expects a lot more revenue from these ads, but also puts a lot more work into them, as well as a report that 75% are keeping or upping their iAd interest which tells me that even at the same marketshare Apple should be making more profit than Google on this particular front.
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post #21 of 61
I routinely open iAds because I know they are worth a look at least. Others I ignore, regardless of whether I might be interested in the product/service or not. I suspect I am not alone.

In the ad business clients sniff around, hire, fire, change, and re-hire agencies all the time. They are a fickle lot. It's no big whoop. But because SJ is involved it's a chance to drag out all the tired old FUD punch lines and get a few page hits. I'm not saying it isn't true on some level, I'm just saying: "So what?" Apple has been doing things their way for a long time and getting criticized and getting rich doing it. A little faith, please.
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post #22 of 61
Quote:
Originally Posted by solipsism View Post

I have to wonder how close that relationship is now. The Nike+ app for v4.x has yet to work right, even with the 4.2 betas. Itll cut out at an apparently random time so your distance and times are way off.

Nike says they have no control over the Nike+ app (which makes sense since its built into iOS) and Apple doesnt respond on the issue (as usual lol).

The work around is to but Nike+GPS or one of the other apps that bypass the wireless Nike+ device. The accelerometer and GPS built into the iPhone is pretty accurate for this sort of thing and Nike+GPS makes a pretty slick image for you of your course, with the online version showing you elevation along your route which has helped determine why I was faster or slower in certain areas.

I just use a map and a watch
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post #23 of 61
Quote:
Originally Posted by Postulant View Post

It's because Steve wears New Balance...

So do I!...

Great minds think alike!

Oh darn, I just peed a little from laughing at myself...

Can anyone tell me where I can go to access a real life iAd? So I can see one for myself... Thanks.

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post #24 of 61
Apple will relax iAd rules just like it did for iPhone development: iron-fisted control pisses off the people who make it possible: actual developers and actual companies seeking ads.
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post #25 of 61
Adidasgate!

"Apple should pull the plug on the iPhone."

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"Apple should pull the plug on the iPhone."

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post #26 of 61
Yep, sounds like a bit of old fashioned Apple Stock Manipulation/FUD.
*Yawn*
Well, I guess it IS a rumours site afterall....
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post #27 of 61
Quote:
Originally Posted by AppleSauce007 View Post

Apple evidently puts out insanely great products and in order to do that it can take extra time and effort. It is understandable that some companies may not wish to put in such an effort even at the cost inferior results.

I believe that if every iAd advertisement is insanely great then Apple will benefit in the long term when advertisers know their chance of a successful ad campaign on iAds is very high.

I for one actually look for iAd advertisement to see them because I know that they are very cool. They are like the best Super Bowl ads. Not only do you watch them you talk to you friends about them.

If Adidas does not want to put in the time and effort for an awesome ad then so be it. I will gladly watch Nike ads and buy their products.

Are there any iAds for "Le Coq Sportif"? Better start using iAds...

Time will tell.

Like a lamb to the slaughter. Advertisers and companies dream of people like you.

"Creative Differences" says nothing about the quality of either Adidas' or Apple's "awesome"ness. I think you find it inconceivable that Apple might have gotten this wrong.

Without more information you (or I) can't really say.
post #28 of 61
If Apple wasn't around making it rain on these bi**** no one would step up to the plate the way Apple does. And we all know that.
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post #29 of 61
Quote:
Originally Posted by OnePotato View Post

I think Steve Jobs was most concerned about all the nudity in the Adidas ad.

See this is marketing genius, who didn't read this and think to themselves "Damn, wish I could see that ad!"
post #30 of 61
Quote:
Originally Posted by g3pro View Post

Apple will relax iAd rules just like it did for iPhone development: iron-fisted control pisses off the people who make it possible: actual developers and actual companies seeking ads.

But rather then how I read your comment to sound, as in, at first they are too controlling, then learn to relax it a little, perhaps it is on purpose. Sets things on the right track so to speak, make the groove along the path you want before relaxing and letting others follow.
post #31 of 61
It'd be interesting to know who at apple is judging the ad concepts brought forth by other companies. The majority of their advertising still goes through chiat\\day right? Is apple having them oversee the ads, is jobs personally going through them? (I know not likely, but it isn't like there are hundreds, so it would be possible)
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post #32 of 61
Quote:
Originally Posted by ast3r3x View Post

It'd be interesting to know who at apple is judging the ad concepts brought forth by other companies. The majority of their advertising still goes through chiat\\day right? Is apple having them oversee the ads, is jobs personally going through them? (I know not likely, but it isn't like there are hundreds, so it would be possible)

I would surely imagine Steve Jobs would be looking in at regular interval. A big company like Adidas in a $10,000,000 has to be to worth his at least irregular attention.
post #33 of 61
Wait... two sources. And it's rumor? I've seen far less passed off as a story here.

Sure, sure, you'll point to how that source or this source has all these problems in the past and try to degenerate the whole thing. Heck, you may even try to say how above-board your own reporting is... but c'mon. I see nothing wrong with Apple finding its hind tit stuck in the grater every once in a while. They're not perfect, for crying out loud. I mean, look at the iPhone 4 antenna.
post #34 of 61
Apple are taking on a huge burden if they want to quality control every ad campaign used in iOS. It's just not feasible to make every one of them high quality. It's good that they are trying to improve advertising but there are more important things to spend time on such as building HTML 5 authoring tools for the rest of the world to build their own adverts.
post #35 of 61
I'm calling "bull". Creative work rejected only three times? That's NOTHING!

I don't believe this for a second. Concepts may be generated in the dozens or hundreds before being finalized, especially for a multi-million dollar campaign.

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post #36 of 61
Yes Steve Jobs is a control freak. If you didn't know that when you signed the dotted line on your business contract with Apple, then you don't deserve to run your company.

And yes Jobs being a control freak has been so bad for Apple's business partners. Look how much AT&T's subscriber numbers and bottom line have collapsed ever since they got iPhone exclusivity by yielding total control of the device to Apple. (sarcasm). And look how little business all those Chinese contract manufacturers have done ever since they sold their souls to Steve Jobs. (more sarcasm)

Perhaps Adidas and Chanel are not comfortable working under Apple's usual terms. That does not prove that with iAd, Apple's way of doing business is a failure. The jury is still out on that.
post #37 of 61
Quote:
Originally Posted by SpamSandwich View Post

I'm calling "bull". Creative work rejected only three times? That's NOTHING!

I don't believe this for a second. Concepts may be generated in the dozens or hundreds before being finalized, especially for a multi-million dollar campaign.

Yeah, I'm thinking that if the concept for the ad itself was rejected three times, it was probably just plain old boring.

Apple is trying to position itself (as it does in all markets) by grabbing the top portion. The only way to do that is to ensure at least initially, that all the stuff coming out in iAds is amazing and blows away the other ads. I would bet without even seeing it that Adidas just did some run of the mill ad that just wasn't good enough.

if this is the case and Apple is throwing out the more boring stuff then it's absolutely the right decision.
post #38 of 61
Quote:
Originally Posted by Prof. Peabody View Post

Yeah, I'm thinking that if the concept for the ad itself was rejected three times, it was probably just plain old boring.

Apple is trying to position itself (as it does in all markets) by grabbing the top portion. The only way to do that is to ensure at least initially, that all the stuff coming out in iAds is amazing and blows away the other ads. I would bet without even seeing it that Adidas just did some run of the mill ad that just wasn't good enough.

if this is the case and Apple is throwing out the more boring stuff then it's absolutely the right decision.

I would guess they ran the same re-heated ideas with a little tweak here and there and expected it to pass Steve Jobs' muster with flying colors somehow after three attempts. So yeah, I'm inclined to believe that Adidas just wasn't trying very hard. Then again, I haven't seen a good Adidas commercial in a while. They make good products, but their marketing team must really suck, because all their marketing is is just plaster the logo on a photo of a celebrity wearing their clothing. Or so it seems. Nike does a way better job (in this respect) of offering cooler stuff like NikeiD
post #39 of 61
Quote:
Originally Posted by bartfat View Post

I would guess they ran the same re-heated ideas with a little tweak here and there and expected it to pass Steve Jobs' muster with flying colors somehow after three attempts. So yeah, I'm inclined to believe that Adidas just wasn't trying very hard. Then again, I haven't seen a good Adidas commercial in a while. They make good products, but their marketing team must really suck, because all their marketing is is just plaster the logo on a photo of a celebrity wearing their clothing. Or so it seems. Nike does a way better job (in this respect) of offering cooler stuff like NikeiD

Adidas is huge overseas and make really good commercials outside of the US. Just because you haven't seen any doesn't mean they don't exist.
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post #40 of 61
what's Yahoo! ?

Quote:
Originally Posted by JeffDM View Post

I never know where Yahoo is with ads. I tried them back when they had just switched to the Overture service that they bought & renamed. It wasn't any good, trying to find basic features was a job in chasing your own tail, with a useless help system and no way to contact them with a question. I thought they were now using Microsoft's ad network, but I can't find that source anymore.
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