Apple's Unwillingness to Share User Info Said to Hinder iAd Sales

Discussion in 'MacRumors.com News Discussion' started by MacRumors, Feb 18, 2014.

  1. macrumors bot

    MacRumors

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    Apple's unwillingness to share large amounts of consumer data is hurting its iAd business, according to Madison Avenue media buyers that spoke with AdAge. The company is said to be "downright stingy" with the information it shares, too slow at developing ad products, and "too reticent to foster relationships."

    According to one executive, Apple doesn't have official sales targets for its iAd business, nor does the company operate a large sales team as advertising is viewed as more of an "afterthought."
    First introduced in 2010, Apple's iAd has never enjoyed much success. The service was initially designed to help developers earn money on the iOS platform, but it failed to attract developer interest and thus never garnered a significant amount of revenue.

    With the launch of iTunes Radio, Apple revamped its iAd program, refocusing on the new music service. Apple's iAd team is now in charge of securing deals with major advertisers to support iTunes Radio, which is a much better money-earning opportunity for the company.

    Still, advertising firms that work with Apple find it highly frustrating the company won't share information on consumer preference with advertising partners, preventing more targeted ad campaigns. Apple has a huge amount of customer data, including addresses, geographic preferences and app and music purchases, but because Apple does not use cookie-based tracking and ad targeting, advertisers must rely on Apple to deliver ads to a desired audience.
    Though companies would like for Apple to share additional information, the company has still managed to score major advertising partners that are willing to take whatever they can get. When iTunes Radio debuted, it included advertisements from Macy's, McDonald's, Nissan, and Procter & Gamble.

    Apple earned $258 million in U.S. mobile-ad revenue in 2013, an amount dwarfed by the advertising revenue taken in by companies like Google and Facebook. In 2013, Google generated $3.98 billion in mobile ad revenue, while Facebook garnered $1.53 billion, but the company will likely see growth in ad revenue as iTunes Radio gains popularity despite its unwillingness to cooperate fully with advertisers.

    Article Link: Apple's Unwillingness to Share User Info Said to Hinder iAd Sales
     
  2. macrumors 6502a

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  3. macrumors member

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    #3
    Good. That's why I'm using Apple products and not Google products.
     
  4. macrumors 6502

    christarp

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    #4
    ding ding ding
     
  5. macrumors 6502

    larrylaffer

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    #5
    It's amazing what a company can accomplish when they decide to profit off of hardware sales rather than ad sales. The stock is currently over $500 so I'd say they're doing rather well.
     
  6. macrumors 68000

    illegalprelude

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    #6
    And how much money did Google make from hardware vs. Apple? Exactly. I'm glad Apple isn't sharing that info as well. As I tell my clients, Google sells you products for cheap because they want to know everything about you to sell you ads. Apple sells you at a premium because they could care less who you are. I trust a company who wants to know less about my personal information over a company who wants to know every single detail they can about me any day.
     
  7. macrumors 68030

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    #7
    They make enough off products...their biggest advantage over everyone else is customer service, trust and respect. To deny a little extra cash to retain customer confidence is much more valuable.
     
  8. macrumors regular

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    #8
    +1 - Stick to your guns Apple. SCREW the advertisers.
     
  9. macrumors 68000

    BJMRamage

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    Oct 2, 2007
    #9
    Great job Apple.

    This is why i don't sign into Google Services.
    No need to be tracked with EVERYTHING i am doing.
     
  10. macrumors regular

    Msail30bay

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    Penn., USA
    #10
    Well said!!! …………… Am so tired of these damn companies trying to get your personal infos so that they can try and sell you crap. Look at what they are doing on Face(ass)book.
     
  11. macrumors 601

    LagunaSol

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    #11
    Apple's advertising should be attacking Google's shifty business model.
     
  12. macrumors 68030

    macs4nw

    #12
    Good to know there is a company that has a conscience, and won't sell your soul to the devil.
     
  13. macrumors member

    jtrauscht

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  14. macrumors 6502

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    #14
    no, its more like the best looking girl at the party who refuses to go home with any slimy delta-bravo who tries to get in her pants.
     
  15. macrumors regular

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    #15
    I wouldn't bring stock performance into the argument if you favor Apple:

    2014 Year-to-date: Google +8.2%, Apple -2.3%
    Since Sept, 2012: Google +70%, Apple -20%
     
  16. macrumors 68000

    VulchR

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    #16
    Thank you Apple for not selling the consumer down the river....
     
  17. macrumors 6502

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    #17
    sources, please.
    according to 1stock1.com, aapl returned 5.42% gain in 2013 and 31% in 2012.
    http://www.1stock1.com/1stock1_148.htm
     
  18. macrumors G3

    mattopotamus

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    #18
    ? That is kinda off...google stock is over $1200
     
  19. macrumors 601

    dannyyankou

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  20. numlock, Feb 18, 2014
    Last edited: Feb 18, 2014

    macrumors 65816

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    #20
    how many times have they had to lower the iads pricing?

    those snippets posted here seem to be cherry picked and give the feeling that apple is guarding users info and privacy so much.
     
  21. macrumors 603

    jrswizzle

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    #21
    I think I made this argument in a different thread and was told "Google's and Apple's advertising aren't' different".

    Glad I was right. Good for Apple.
     
  22. macrumors 6502a

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    #22
    Amen. Couldn't have said it better myself.
     
  23. macrumors 601

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    #23
    ... and this article is saying that a lot of ad-supported Apps on iOS use Google's ad network, not Apple's.
     
  24. macrumors 603

    jrswizzle

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    #24
    Why anyone would measure profitability and success off of stock prices is beyond me.....

    Apple keeps adding to its war chest of over $150 billion in cash - raking in massive revenues and profits every quarter.

    If you really want to look at stock valuation, take a look at market cap - Google's stock made trade higher, but Apple has the higher valuation overall.

    But what does Wall Street know....
     
  25. macrumors 603

    Joined:
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    Location:
    The Cool Part of CA, USA
    #25
    Exactly. Give me a choice, and I'll take a company that values my privacy over profit any day of the week.

    And that's exactly what this is to Apple--they could give up consumer data to make more money. They haven't. Good on them.
     

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