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

Posted:
in iPhone edited January 2014
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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Comments

  • Reply 1 of 100
    solipsismsolipsism Posts: 25,726member
    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.
  • Reply 2 of 100
    diddydiddy Posts: 282member
    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.
  • Reply 3 of 100
    mj1970mj1970 Posts: 9,002member
    In today's news: One competitor predicts demise of another competitor. Film at 11.



    In Other news: The sun rose in the east today.
  • Reply 4 of 100
    asciiascii Posts: 5,941member
    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?
  • Reply 5 of 100
    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.
  • Reply 6 of 100
    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.
  • Reply 7 of 100
    solipsismsolipsism Posts: 25,726member
    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?

  • Reply 8 of 100
    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.
  • Reply 9 of 100
    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.
  • Reply 10 of 100
    asciiascii Posts: 5,941member
    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.
  • Reply 11 of 100
    Don't think she will be making an appearance at any SJ keynotes this millennium.
  • Reply 12 of 100
    solipsismsolipsism Posts: 25,726member
    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. I?m 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 don?t until after Apple bests them. It?s interesting that what was thought to be Job?s legacy and ultimate failure, NeXT, turned out to the foundation and future of a resurrected Apple. Love him or hate him, you can?t deny that Jobs has had way too many financial and technological successes that have altered the world?s culture to ignore iAds because a CEO from a languishing Yahoo pooh-poohs it
  • Reply 13 of 100
    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.
  • Reply 14 of 100
    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?
  • Reply 15 of 100
    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.
  • Reply 16 of 100
    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.
  • Reply 17 of 100
    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?"
  • Reply 18 of 100
    gqbgqb Posts: 1,934member
    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.
  • Reply 19 of 100
    The same was said about the iPod, iPhone, iTunes, iPad.. And a lot of people have been humiliated for underestimating..
  • Reply 20 of 100
    solipsismsolipsism Posts: 25,726member
    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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