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

[MacRumors]

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.

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

 

[bacaramac]

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.

 

[Spanky Deluxe]

This coming from Yahoo? Great advice.

 

[MacDawg]

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

 

[wordmunger]

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.

 

[Henriok]

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.

 

[*LTD*]

Coming from Yahoo. LOL

 

[addicted44]

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.

 

[lazyKyosuke]

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?

 

[ajones46]

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...?

 

[jasonxneo]

iads

no more iAds's!!!

 

[addicted44]

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.

Thats true. I don't mind tapping on an iAd, because

a) I know I can get back to what I was doing easily.
b) Its a pretty entertaining experience, for the most part.

Ive already found 2 apps, that I use heavily through an iAd.

 

[blackpond]

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

I agree. The worst, most performance hogging ads I've ever seen were those Adobe CS5 Flash based ads that killed every page they showed up on around the time CS5 was launching. I figured it was part of the CS5 experience... but maybe it was just Flash. Who knows, really...

 

[MacQuest]

"Yahoo CEO says..." -

There's a Yahoo CEO? Is there still a Yahoo?!!!

Tell that great business decision making moron to **** and mind what's left of his business.

Meh, don't mind me, I'm just in a mood this morning and don't feel like hearing failures predict failure...

 

[JGowan]

does total control mean deciding how to market the company or its products? Please tell me the company that is using iAds gets some sort of input on what it wants to sell. I can see Apple saying, WE BUILD THE APP. Their the software guys and could do it much better and quicker than anyone else, but there's got to be input up front from Company A getting the ad done.

 

[aimbdd]

This coming from Yahoo? Great advice.

hahahahaha very very true... what market share do they have of the search market?

 

[Apple Corps]

Carol Bartz was brought into Yahoo to vastly increase the market value of their stock - which has been a joke for many years.

Thus far she is an epic failure - noted for her foul mouth / bullying ways.

She would not recognize an innovative solution if it was handed to her.

Jerry Yang has to be hiding in shame that he pushed to get her on board.

She and Eric Schmidt should be a pair - two of the emptiest suits in Silicon Valley !!!

 

[Consultant]

And they learned from experience from Yahoo's tight quality control?

 

[ryuworks]

yah-who???

 

[MacQuest]

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

ROFL!

Exactly.

These idiot nay-sayers never learn. Let's keep it that way and just laugh, point, and stare.

 

[mattwolfmatt]

Well what else would he say? iAds will be a huge success?

Even the Royals thought they were going to win the world series in April.

 

[NebulaClash]

THIS JUST IN: CEO of a rival company suggests Apple will fail.

Repeat as necessary.

 

[OllyW]

I don't care if iAds is a success or not. I didn't buy my iPhone because of the in-app adverts.

 

[thetaylor13]

I agree, my Yahoo!Phone has a way better ad experience, Apple should follow suit.

 

[pdjudd]

I don't care if iAds is a success or not. I didn't buy my iPhone because of the in-app adverts.

No that's the result of buying Applications that utilize advertising. No part of the stock Apple iPhone contains any ad's whatsoever.