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Yahoo CEO Claims Apple's Demand for Control Will Be iAd's Downfall

Reuters publishes an interview with Yahoo CEO Carol Bartz touching on a number of different topics, briefly including the burgeoning mobile advertising market and Apple's role in it through its iAd program. In Bartz's view, Apple's demands for total control over the program will ultimately be its downfall, as advertisers eventually rebel against the non-traditional framework in favor of the greater flexibility offered by other channels.

Mobile advertising, although still a nascent market, has become the next battleground pitting Yahoo against Google and Apple.

Earlier this year Apple introduced its iAd service to create premium ads for marketers on the iPhone.

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

Apple's iAd program went live on July 1st with only a small handful of prominent brands ready for the launch. Despite the fact that the few early adopters have been happy with the results so far, rollout of the ads has been slowed by Apple's firm control over the entire process, including the creative and development aspects that advertisers have been accustomed to having control over themselves.

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22 months ago
Honestly, I almost forgot about iAd's, but that is probably since I don't download a lot of free apps. It seems that everything Apple does takes off, so I am skeptical that Apple will fail with this one, but who knows.
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22 months ago
This coming from Yahoo? Great advice.
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22 months ago
iTunes will fail because it is closed and controlled
iPhone will fail because it is closed and controlled
iPad will fail because it is closed and controlled

yawn
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22 months ago
The problem with online ads is that they suck and when they don't work, they often take down a whole web page.

Compare this to many magazines, where many people actually buy the magazines *for the ads*. The only way for Apple to succeed in online ads is for them to have some control over the ads, to make sure they:

a. Don't suck
b. Actually work

If advertisers buy into this, they'll see impressive results. If they don't, they'll be missing a big opportunity.
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22 months ago
I never interpreted it as Apple would keep firm control over iAds forever, but they wanted control early as to set the standard, work out the tools, make sure that it'd be premium ads and so forth. When this is set, Apple would release the control to agencies.
And this control would last until years end iirc.
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22 months ago
Coming from Yahoo. LOL
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22 months ago

Honestly, I almost forgot about iAd's, but that is probably since I don't download a lot of free apps. It seems that everything Apple does takes off, so I am skeptical that Apple will fail with this one, but who knows.


Carol is probably right. However, what people don't realize is how quickly Apple is willing to change its technologies, business models, etc. If its not working, Apple will change course.

I remember a time when people used to say that the iPod will never be completely dominant, because of its 400+ price tag. Then came the Mini, followed by the shuffle, and you can now buy a $50 iPod in a store.

I remember when people would say Apple would never sell a computer for less than 1000 bucks. And now we have the iPad for 500 and the mini for 600.

People said Apple would never leave PowerPC, but now all its devices run either on x86 or ARM.
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22 months ago
Yahoo!? really people still have jobs there?

Anyway, Apple is controlling which is mostly why we don't get Viruses nor do their phones (Android!). iAD (iono what it looks like or really does but) I assume will make sure we (Apple users) do not get links or bad advertisement that will lead to a vast array of viruses and hopefully we will never have to hear the YOU'RE A WINNER / CONGRATULATIONS YOU WON guy and/or female again.

But seriously Yahoo! is still around?
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22 months ago
I don't get how it'll make Apple fail. If advertisers don't want to use iAd, they won't. End of story. Apple has been doing extremely well without iAd for how long...?
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22 months ago
no more iAds's!!!
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