Apple's iAd Program Struggling to Fill Slots and Renew Advertisers?

135033 iad and iphone 4

Last week, we noted that Apple and Campbell's had commissioned a study that demonstrated that Apple's iAd mobile advertising platform offers advertisers more bang for their buck and greater brand recognition than traditional advertising channels such as television.

Apple may have felt it needed that data in order to entice advertisers to join the program, as a new report from TechCrunch suggests that fill rates for ad requests are dropping and the company's staffers are struggling to get advertisers to sign on following the initial high-publicity push that accompanied the service's launch last July.

Across the board, several developers I've spoken to confirm that "fill rates" for iAds dropped drastically after the New Year and have yet to recover. The fill rate - what percentage of the ad inventory is actually filled with an ad - for two separate developers plummeted from 18 percent to 6 percent. And in a few instances for some newer apps, none of the ad slots were getting filled, compared to nearly complete fill rates from other mobile ad networks. Others report better fill rates but as one developer says, "They have definitely come down."

The report isn't the first to note a significant drop in fill rates with the new year, and it is unclear whether the result is due to a decline in advertiser participation because of dissatisfaction with the program, expected seasonal variations in advertising spending, or simply Apple struggling to fill an increasing number of available slots buoyed by a burst of sales of iOS devices over the holidays.

But TechCrunch's report delves further into the situation, noting that the initial wave of advertisers were brought on board with Steve Jobs and other key executives personally meeting with CEOs of other companies to seal the deal, and now that that initial splash is over, the iAd program is becoming a harder sell.

After selling the initial campaigns, the relationships were dumped into the laps of junior account managers in Apple's advertising business (which came out of Apple's $275 million acquisition of Quattro Wireless last year). They are being tasked to get renewals this year from ad agencies and brands or equal or greater amounts. But the experiment is over (advertisers can now see how the ads perform) and these junior salesmen don't have access to the CEOs. They need to talk to their counterparts at ad agencies and brands, who can't spend $1 million on a mobile ad campaign so easily. One ad agency executive tells me that the iAd salespeople are suddenly calling a lot more and becoming very aggressive in pushing for renewals.

Other issues such as a lack of cross-platform compatibility and pricing structures have also been cited as reasons for advertisers being wary of coming on board, but together it appears that Apple may be having problems expanding the program rapidly enough to satisfy the growing number of apps and devices looking to tap into iAds.

Related Forum: iPhone

Popular Stories

iPhone 15 Pro Mock Feature Buttonless

iPhone 15 Pro Max to 'Break Record' for Thinnest Bezels on a Smartphone

Friday March 17, 2023 2:59 am PDT by
The iPhone 15 Pro Max will have the thinnest bezels of any smartphone, beating the record currently held by the Xiaomi 13. That's according to the leaker known as "Ice Universe," who has divulged accurate information about Apple's plans in the past. Both iPhone 15 Pro models are expected to have thinner, curved bezels compared to the iPhone 14 Pro, potentially resulting in an Apple...
iphone 14 pro max deep purple feature purple

iPhone 15 Pro Launching This Year With These 11 New Features

Monday March 13, 2023 6:47 am PDT by
While the iPhone 15 lineup is around six months away, there have already been plenty of rumors about the devices. Many new features and changes are expected for the iPhone 15 Pro models in particular, including a titanium frame and more. Below, we have recapped 11 features rumored for iPhone 15 Pro models that are not expected to be available on the standard iPhone 15 and iPhone 15 Plus:A17...
iPhone 12 Pro vs iPhone 15 Pro Feature

iPhone 12 Pro vs. 15 Pro: New Features to Expect if You've Waited to Upgrade

Friday March 17, 2023 10:29 am PDT by
While year-over-year iPhone upgrades are not always groundbreaking, new features can begin to stack up over multiple generations. For example, the iPhone 15 Pro will be a notable upgrade for those who still have a three-year-old iPhone 12 Pro. If you are still using an iPhone 12 Pro and are considering upgrading to the iPhone 15 Pro when it launches later this year, we have put together a...
iphone 14 pro max deep purple feature purple

iPhone 15 Pro Predicted to See First Price Increase Since iPhone X

Wednesday March 15, 2023 7:49 am PDT by
Apple's next-generation iPhone 15 Pro and iPhone 15 Pro Max will likely be more expensive than previous Pro models, according to Jeff Pu, a tech analyst at Hong Kong-based investment firm Haitong International Securities. In a research note this week, Pu predicted the iPhone 15 Pro models will see a price increase due to several rumored hardware upgrades, including a titanium frame,...
maxresdefault

T-Mobile to Acquire Ryan Reynolds' Mint Mobile Brand

Wednesday March 15, 2023 3:33 pm PDT by
U.S. carrier T-Mobile today announced that it plans to acquire Mint Mobile, the affordable smartphone brand that is promoted by and backed by actor Ryan Reynolds. Reynolds and T-Mobile CEO Mike Sievert teamed up for a video letting customers know about the coming acquisition. The deal is for Ka'ena Corporation, the parent company of Mint Mobile, Ultra Mobile, and Plum, with T-Mobile paying...
youtube tv

YouTube TV Price Goes Up to $73 Per Month

Thursday March 16, 2023 11:46 am PDT by
YouTube today announced that it is increasing the price of the YouTube TV service, with the cost set to go from $65 to $73 starting today. New members will need to pay $73/month for the streaming service starting now, while prices will increase for existing members on April 18. According to YouTube, the price is increasing because "content costs have risen" and it needs to charge more to...