WSJ: Apple's tight control of iAds frustrates advertisers
A new report alleges that Apple's fledgling mobile advertising service, iAd, is off to a "bumpy start," as advertisers experience delays due to Apple's creative involvement.
The Wall Street Journal reported on Sunday that advertisers have had difficulty adjusting to Apple's new advertising system. Part of the problem, those partners said, is that Apple maintains "tight control over the creative process."
"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, according to several ad executives involved with creating iAds," the report said.
It continued: "That has made the creation of mobile ads laborious, taking about eight to 10 weeks from brainstorm to completion -- longer than normal for most mobile ads, executives said. The building of the actual ad, handled by Apple, in some cases is taking two weeks longer than expected, one person added."
Part of the hiccups are said to be the newness of the program, as Apple and its partners attempt to iron out the kinks. The interactive iAds began to show up in software on iOS 4 compatible devices on July 1.
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.
Sam Altman, Chief executive of social networking app Loopt, told the Journal that he feels the start of Apple's iAd network has been "disappointingly slow." However, he believes it will eventually perform better in the long term.
The report also said that Apple designs the iAds in HTMl5, but it has not yet provided a developer kit to its advertising partners to help them understand the capabilities and limitations of the format. It also alleged that Apple does not tell agencies where the iAd will appear, forcing them to search for their ads rather than easily access them.
The largely negative account of the start of the iAd service is a stark contrast from a different report last week from the Los Angeles Times, which painted a much more rosy picture. Initial advertisers like Unilever and Nissan said that they have had great results with iAd, with the car maker saying that users are five times more likely to click an iAd than a traditional mobile advertisement.
Developers, too, have found success with the new iAd platform. Dictionary.com said the amount it charges for ad space in its mobile advertisement increased 177 percent since Apple launched iAds. In addition, CBS Mobile has seen up to $25 CPM (an advertising term that means cost per thousand) in its applications for CBS Sports, CNet and GameSpot.
The Wall Street Journal reported on Sunday that advertisers have had difficulty adjusting to Apple's new advertising system. Part of the problem, those partners said, is that Apple maintains "tight control over the creative process."
"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, according to several ad executives involved with creating iAds," the report said.
It continued: "That has made the creation of mobile ads laborious, taking about eight to 10 weeks from brainstorm to completion -- longer than normal for most mobile ads, executives said. The building of the actual ad, handled by Apple, in some cases is taking two weeks longer than expected, one person added."
Part of the hiccups are said to be the newness of the program, as Apple and its partners attempt to iron out the kinks. The interactive iAds began to show up in software on iOS 4 compatible devices on July 1.
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.
Sam Altman, Chief executive of social networking app Loopt, told the Journal that he feels the start of Apple's iAd network has been "disappointingly slow." However, he believes it will eventually perform better in the long term.
The report also said that Apple designs the iAds in HTMl5, but it has not yet provided a developer kit to its advertising partners to help them understand the capabilities and limitations of the format. It also alleged that Apple does not tell agencies where the iAd will appear, forcing them to search for their ads rather than easily access them.
The largely negative account of the start of the iAd service is a stark contrast from a different report last week from the Los Angeles Times, which painted a much more rosy picture. Initial advertisers like Unilever and Nissan said that they have had great results with iAd, with the car maker saying that users are five times more likely to click an iAd than a traditional mobile advertisement.
Developers, too, have found success with the new iAd platform. Dictionary.com said the amount it charges for ad space in its mobile advertisement increased 177 percent since Apple launched iAds. In addition, CBS Mobile has seen up to $25 CPM (an advertising term that means cost per thousand) in its applications for CBS Sports, CNet and GameSpot.
Comments
Now, the WSJ may be hit-baiting a bit with their language: any ?Apple failure? large or small can become a profitable headline
Kudos to Apple for having the foresight and the wherewithal to implement a revamped approach.
Wasn't there recently a report saying it's great?
It was mentioned in the article if you read the article all the way through before you wanted to be the first to post.
If it's true that Apple didn't let ad purchasers in which apps their ads would appear in then it's Apple's fault.
As for their control over iAds, it can only be a good thing. Looking at net ads over the past 15 years they've all been lousy. They should be learning from Apple on how to create a proper ad. Or the Old Spice campaign.
By who?
Read 2nd last paragraph. .... LA Times, 'k?
Nothing to add!
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Internet advertising is a mess right now, and Apple is absolutely doing the right thing by exerting "tight control over the creative process." Internet advertising in general is high-volume / low-quality, and that makes for a lousy end-user experience.
I'd drop the iPhone in a minute if apps start to resemble the ad-choked web pages we gotta squint past. Apple has good reason to be watching over things.
That said, Apple needs to tread a fine line here. Nobody wants garbage, but you don't want to make it so hard the advertisers say "forget it" and put their efforts towards Android instead.
I have a copy of the developer kit for creating iAds. It is available to any registered (paid) iOS developer. There were also two sessions on the subject at WWDC - I've watched them via the videos that are also available to devs.
PS: I've played an iAd game that trumps the refinement and fell or any real app on a smartphone outside iOS. I find that ironic.
If only a company with Apple's creative skills had a say in TV ads before they were allowed on the air. Most are so bad it is unbelievable.
If only a company with Apple's creative skills had a say in TV SHOWS before they were allowed on the air. Hello, Pixar?
If only a company with Apple's creative skills had a say in TV SHOWS before they were allowed on the air. Hello, Pixar?
Actually there are at least two creative skills involved:
1) The artistic creative skill to conceive and story board an ad
2) the technical/programming skill to deliver the ad
Often, what isn't said (or isn't shown) is more compelling than what is...
... the classic VW bug ads that only said: "Coming soon"
In the early days, Regis McKenna handled most of Apple's ads-- later it was Chait-Day. I think they still do Apple's advertising.
My point: Apple has always strived for ads that matched or exceed Apple's product quality and buzz.
I suspect that Apple is involving ad agency creatives for app ads-- after all, these are an extension of the Apple ecosystem and a reflection on Apple, itself.
... If it is worth doing, it is worth doing it right!
,
Apple works hard to include quality in all it does. They may not always be perfect but they are most often much better than "good enough".
Quality work takes time, especially with new products. If the ad agencies want to continue dolling out sloppy ads, I suppose they can put them on Google or an Android. Apple works hard to include quality in all it does. They may not always be perfect but they are most often much better than "good enough".
I'm sorry but quality and time are two things unheard of in the modern ad industry
And no matter how good your app is, I have a simple rule: I can pay for the app or your advertisers can. I won't pay for an app with embedded ads.
As someone who for years has been begging websites "Let me pay you for an ad-free experience" I fervently hope and pray that iAds dies a miserable death. If developers can't make enough money by selling their products and feel the need to pad the bottom line by putting iAds into them, I'm not interested.
And no matter how good your app is, I have a simple rule: I can pay for the app or your advertisers can. I won't pay for an app with embedded ads.
If you hate ads (and we all do) then you should be championing iAds, because your wish for the internet to be all pay-for-play access simply isn’t feasible. At least with iAds there is a chance that advertisers will actually learn to focus internet-based ads at customers in a way that is less intrusive and more useful to the viewer.