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

Posted:
in iPhone edited January 2014
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."
«13

Comments

  • Reply 1 of 60
    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.
  • Reply 2 of 60
    smiles77smiles77 Posts: 668member
    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.
  • Reply 3 of 60
    jeffdmjeffdm Posts: 12,951member
    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.
  • Reply 4 of 60
    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.
  • Reply 5 of 60
    solipsismsolipsism Posts: 25,726member
    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.
  • Reply 6 of 60
    solipsismsolipsism Posts: 25,726member
    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.
  • Reply 7 of 60
    wurm5150wurm5150 Posts: 763member
    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.
  • Reply 8 of 60
    MacProMacPro Posts: 19,718member
    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.
  • Reply 9 of 60
    postulantpostulant Posts: 1,272member
    It's because Steve wears New Balance...
  • Reply 10 of 60
    I think Steve Jobs was most concerned about all the nudity in the Adidas ad.
  • Reply 11 of 60
    MacProMacPro Posts: 19,718member
    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.
  • Reply 12 of 60
    charlitunacharlituna Posts: 7,217member
    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.
  • Reply 13 of 60
    MacProMacPro Posts: 19,718member
    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"
  • Reply 14 of 60
    solipsismsolipsism Posts: 25,726member
    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. It?ll 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 it?s built into iOS) and Apple doesn?t 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.
  • Reply 15 of 60
    postulantpostulant Posts: 1,272member
    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.
  • Reply 16 of 60
    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...
  • Reply 17 of 60
    postulantpostulant Posts: 1,272member
    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".
  • Reply 18 of 60
    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.
  • Reply 19 of 60
    solipsismsolipsism Posts: 25,726member
    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 doesn?t tell us anything about how these affect each company?s 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 it?s 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.
  • Reply 20 of 60
    robin huberrobin huber Posts: 3,949member
    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.
Sign In or Register to comment.