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Considering Google has gone nowhere fast with their mobile ad biz, an essentially free one by Apple for direct access to platform responsible for a 90% majority of revenue generated in mobile, I'd say it's time to take a hard look at selling that Google stock.

Desktop ads are bottoming out, no growth in mobile, and just a few scattered pie in the sky projects stapled to a disasterous side initiative track record... that's a dead company walking.
Except that Google's booming right now and will be for the foreseeable future.
 
AFAIK they're just shutting down the internal teams, and may open the platform up for anyone to submit iAds.
The whole point of iAds was to make ads that were high quality, used little data, were fast, and non intrusive to the customer.

Curious also as to what this means for developers.

Best case? Nothing. Worst case? This time next year, the iAd platform is like most other high-paying ad platforms—overrun by ads with blinking banners telling you that you have to install Java to use them, with clicks taking you to malware sites. Most likely case? Somewhere in between.

If I were shipping software and depending on iAd for revenue, I would at least be talking to other ad networks, doing A/B testing with their ads to see how customers react, and generally having contingency plans ready just in case iAd crashes and burns over the next few years. Then again, if I were in that position, I would have already done so years ago, and I'd reevaluate things at least once a year so that I'd always know what the landscape looked like at any given moment, just in case.
 
Here is an idea. Developers can just pull iAd out of their apps and charge for the App instead. If the app is not very good, then keep it free with the iAd in there and we will know that it isn't worth downloading.
I hate ads as much as the next Apple guy, but I don't mind it as long as I have the IAP option to remove them. This could be circumvented with app trials but Apple has never shown interest in this. Weather Underground does this well in their apps. You basically get to try it out and pay to remove the obnoxiousness. More apps should take this approach.
 
Good to see Apple publicly admit to something their are not good at.... That doesn't come from Apple often....

I wonder if this had any struggle over the "how much to pay publishers" and "They are not getting enough from ibooks" if that had anything to do with.

if these peple on here hate ads so much, how much of then use ad-blockers on MR ?

I doubt not very much, which proves my point.
 
Apple has never been good at services. They are good at hardware and software but they are very deficient at service. This is the primary reason why Google is kicking them in that area. Chrome apps, gmail, etc are way faster to use than apple equivalent and their cross platform compatibility is going to keep them ahead. If Apple does not get better at this real fast, they will hurt.
 
Here is an idea. Developers can just pull iAd out of their apps and charge for the App instead. If the app is not very good, then keep it free with the iAd in there and we will know that it isn't worth downloading.

And there is no way of knowing the quality of the app until you've used it for an extended amount of time. The in-app purchase/iad system works quite well in this scenario, as it would require a separate "Lite" version of the app on the App Store listings for users to test the app before paying. If a user likes the app, they can then purchase the add-free version/more features.
 
Apple has never been good at services. They are good at hardware and software but they are very deficient at service. This is the primary reason why Google is kicking them in that area. Chrome apps, gmail, etc are way faster to use than apple equivalent and their cross platform compatibility is going to keep them ahead. If Apple does not get better at this real fast, they will hurt.

Why will they hurt? They still make the majority of profits in hardware.

So what if google has a lot of people using their services for free?
 
damn , I initially read that as iAds going away. Right decision for apple.
 
From the linked article:

"In 2015, iAd’s share of mobile display advertising revenue was just 5.1%, according to data compiled by EMarketer; meanwhile Facebook claimed 37.9% and Google 9.5%."

A 5.1% share of mobile ad revenues is actually pretty huge, especially when you consider that Google is only at 9.5%!

That makes iAd by far one of the largest players in the (very fragmented) industry.
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Here is an idea. Developers can just pull iAd out of their apps and charge for the App instead. If the app is not very good, then keep it free with the iAd in there and we will know that it isn't worth downloading.

iAd (and other advertising networks) only make money if users are actually using the app. If an ad-supported app sucks, then people will delete it straight away and the developers will never make any money.

On the other hand, developers can make plenty of money peddling 99c crapware apps. Post a few compelling-looking screenshots, buy a few fake reviews... Even if people delete the app straight away, you've still got their money.
 
Here is an idea. Developers can just pull iAd out of their apps and charge for the App instead. If the app is not very good, then keep it free with the iAd in there and we will know that it isn't worth downloading.

That is a very nice thought in the fantasy world were every customer understands that quality apps comes with a price and consider buying them. Or that fantasy world were Apple would set up a system for decent demo versions of apps that pleases both users and developers.

But in the real world right now the sad fact is that you're cutting out a huge part of the customer base who thinks all apps should be free, if you charge for the app. And also those who would like to try the app first. So it is clearly not the case that developers "can just pull iAd out of their apps and charge for the App instead", despite whatever people say on forums.
 
On paper this seemed like a great idea, but in its execution, it seemed to fail.

To accomplish this, Apple will dismantle its iAd sales team and will turn the iAd platform over to publishers, allowing them to directly create and sell advertising content. Publishers will be able to keep 100 percent of revenue generated.
So what does this mean? Apple is no longer getting a cut, what incentive is there for apple to keep this service running?
 
Surprised it took this long. I thought they would have backed out at around the 2 year mark when they realized it really wasn't working for them.
 
I remember when Tim Cook was being interviewed and someone from Google said 'why ads?'

Still feel Tim Cook's reply should have been 'why smartphones?'

Anyway, looks like the Google employees passive aggressive question wasn't needed.
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On paper this seemed like a great idea, but in its execution, it seemed to fail.


So what does this mean? Apple is no longer getting a cut, what incentive is there for apple to keep this service running?

It keeps developers happy.
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From the linked article:

"In 2015, iAd’s share of mobile display advertising revenue was just 5.1%, according to data compiled by EMarketer; meanwhile Facebook claimed 37.9% and Google 9.5%."

A 5.1% share of mobile ad revenues is actually pretty huge, especially when you consider that Google is only at 9.5%!

That makes iAd by far one of the largest players in the (very fragmented) industry.
[doublepost=1452767980][/doublepost]

iAd (and other advertising networks) only make money if users are actually using the app. If an ad-supported app sucks, then people will delete it straight away and the developers will never make any money.

On the other hand, developers can make plenty of money peddling 99c crapware apps. Post a few compelling-looking screenshots, buy a few fake reviews... Even if people delete the app straight away, you've still got their money.

I deleted an app straight away and wrote to Apple for a refund... Which I got.

That was for Minecraft Pocket Edition, so hardly a con/crapware app.
 
It keeps developers happy.
But there are other services already out there. I'm not sure (not being a developer) that this alone would make them happy. On one hand, they get more cash back, that's a plus but on the other hand Apple isn't making any money on this and you have to wonder about the long term viability.
 
Considering Google has gone nowhere fast with their mobile ad biz, an essentially free one by Apple for direct access to platform responsible for a 90% majority of revenue generated in mobile, I'd say it's time to take a hard look at selling that Google stock.

Apple making 90% of smartphone profits has nothing to do with ad revenue.

Google's revenue has been increasing, including the percentage from mobile ads.

Mobile ads themselves are expected to pass print ads this year in spending, an event coming earlier than predicted.

From the linked article:

"In 2015, iAd’s share of mobile display advertising revenue was just 5.1%, according to data compiled by EMarketer; meanwhile Facebook claimed 37.9% and Google 9.5%."

A 5.1% share of mobile ad revenues is actually pretty huge, especially when you consider that Google is only at 9.5%!

Of course, that instantly fails the smell test :). If Apple was making half the ad revenues of Google, they would not drop iAds.

Those look like percentages of change, not of market share. I suspect that someone at Buzzfeed screwed up reading some chart. (No surprise these days; the quality of tech reporting continues to drop.)

According to the same source, eMarketeer, this is mobile ad revenue share in the US:

2016-ads-emarketer_mobile.jpg
 
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Do ads even work? Sure, the developer makes some cash but who actually looks or clicks on the ads? Eventually the advertisers will simply stop paying to advertise on these devices because there is very little to no ROI.

I started to do more promotion-based advertising on social media sites where the targeted user can reply back in comments. Its more engaging this way, opens up conversation, and the user can get a better understanding. My sales greatly improved while my advertising expense decreased significantly. A complete win-win-win for everyone.
 
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Best case? Nothing. Worst case? This time next year, the iAd platform is like most other high-paying ad platforms—overrun by ads with blinking banners telling you that you have to install Java to use them, with clicks taking you to malware sites. Most likely case? Somewhere in between.

If I were shipping software and depending on iAd for revenue, I would at least be talking to other ad networks, doing A/B testing with their ads to see how customers react, and generally having contingency plans ready just in case iAd crashes and burns over the next few years. Then again, if I were in that position, I would have already done so years ago, and I'd reevaluate things at least once a year so that I'd always know what the landscape looked like at any given moment, just in case.

You know what I read?

If I was, I would have, I would know, blah blah blah

All air with no skin in the game. Let the people who have experience with iAds or even making apps speak and just read :)

Or at least try creating iAds campaign so you understand what you are discussing.

"the iAd platform is like most other high-paying ad platforms—overrun by ads with blinking banners telling you that you have to install Java to use them, with clicks taking you to malware sites."

Thats literally impossible since campaigns don't allow you to do that. You would know that if you tried it.

Apple isn't loosing its rules or opening iAds platform in the sense that you seem to imagine. its just recognizing its not a business they want to be in, so they are automating it. Ads will likely be approved almost automatically, no sales force will run to try to entice advertisers to join. It will just be a platform if you want it and thats why they are giving publisher 100% of the revenues.
 
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"Publishers will be able to keep 100 percent of revenue generated."

Uh-oh! I don't like the sound of this. This is basically going to entice more developers to use ads in their programs instead of releasing paid/ad-free versions.


Yeah ideally that's where we would be headed. An app I used recently had an interesting model, you unlock premium for a week by watching two video ads, I prefer that as it's not intrusive and doesn't interrupt you in the middle of what you're doing.
 
Question -- does this move allow the publisher or developer to get any more information about the user? If so, this is bad to my privacy obsession.
 
Except that Google's booming right now and will be for the foreseeable future.

Google P/E 34.13
Apple P/E 10.62

Google isn't booming. Wall Street is just betting the farm it will produce. Google has decentralized its business units knowing ahead of time that some will fail. They hope it insulates the stock from any large sell offs when those units fail; and they will fail.
 
It's a bit weird but not all that farfetched. They may have just wanted to finance the platform and tweak it before opening it to developers.

After all, they may still benefit from "high quality ads" on iOS without receiving direct revenue for it.
 
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