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

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

  1. MacRumors macrumors bot


    Apr 12, 2001

    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. locoboi187 macrumors 6502a

    Oct 3, 2012
  3. CamH macrumors member

    Jan 11, 2004
    Good. That's why I'm using Apple products and not Google products.
  4. christarp macrumors 6502


    Oct 29, 2013
    ding ding ding
  5. larrylaffer macrumors 6502


    Aug 1, 2009
    Los Angeles
    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. illegalprelude macrumors 68000


    Mar 10, 2005
    Los Angeles, California
    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. gentlefury macrumors 68030

    Jul 21, 2011
    Los Angeles, CA
    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. ronwasserman macrumors regular

    Mar 6, 2008
    Los Angeles
    +1 - Stick to your guns Apple. SCREW the advertisers.
  9. BJMRamage macrumors 68020


    Oct 2, 2007
    Great job Apple.

    This is why i don't sign into Google Services.
    No need to be tracked with EVERYTHING i am doing.
  10. Msail30bay macrumors regular


    Jan 4, 2014
    Penn., USA
    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. LagunaSol macrumors 601


    Apr 3, 2003
    Apple's advertising should be attacking Google's shifty business model.
  12. macs4nw macrumors 68040


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


    Sep 6, 2010
  14. kwikdeth macrumors 6502a

    Feb 25, 2003
    Tempe, AZ
    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. Mockenrue macrumors 6502

    Aug 3, 2013
    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. VulchR macrumors 68000


    Jun 8, 2009
    Thank you Apple for not selling the consumer down the river....
  17. kwikdeth macrumors 6502a

    Feb 25, 2003
    Tempe, AZ
    sources, please.
    according to, aapl returned 5.42% gain in 2013 and 31% in 2012.
  18. mattopotamus macrumors G4


    Jun 12, 2012
    ? That is kinda stock is over $1200
  19. dannyyankou macrumors 603


    Mar 2, 2012
  20. numlock, Feb 18, 2014
    Last edited: Feb 18, 2014

    numlock macrumors 68000

    Mar 13, 2006
    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. jrswizzle macrumors 603


    Aug 23, 2012
    McKinney, TX
    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. Z400Racer37 macrumors 6502a

    Feb 7, 2011
    Amen. Couldn't have said it better myself.
  23. Daveoc64 macrumors 601

    Jan 16, 2008
    Bristol, UK
    ... and this article is saying that a lot of ad-supported Apps on iOS use Google's ad network, not Apple's.
  24. jrswizzle macrumors 603


    Aug 23, 2012
    McKinney, TX
    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. Makosuke macrumors 603

    Aug 15, 2001
    The Cool Part of CA, USA
    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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