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Thursday, September 16, 2010, 10:05 am
Yahoo CEO predicts demise of Apple's iAd mobile ad network
Yahoo Chief Executve Carol Bartz said she thinks Apple's control over iAd will drive advertisers away, causing the mobile advertising network to "fall apart."Bartz spoke with Reuters about the direction her company is taking, as Yahoo looks to increase its advertising revenue from its search business. In addition, the company is looking toward the growing mobile advertising market, where it hopes to compete with Google and Apple.
In the interview, Bartz took the opportunity to comment on Apple's newly launched iAd mobile ad network, which debuted in July. The Yahoo CEO predicted that Apple will fail because advertisers won't cooperate with the iPhone maker's policies.
"That's going to fall apart for them," Bartz reportedly said of iAd. "Advertisers are not going to have that type of control over them. Apple wants total control over those ads."
Bartz's comments likely stem from comments made by advertisers to The Wall Street Journal in August. Early customers of iAd were said to be experiencing delays in launching their advertisements because Apple has "kept tight control on the creative aspects of ad-making, something advertisers aren't used to."
The report indicated that mobile ads took about eight to 10 weeks to launch, which is much longer than the timeframe for other mobile ads. But Apple has taken such control because it believes the richly interactive ad experiences, which provide essentially an "app within an app," will provide a superior experience when compared to other services, which force users to leave the application and launch a browser.
However, some early adopters to iAd -- including Nissan and Unilver -- have painted a positive picture of Apple's fledgling service. Advertisers indicated that users are five times more likely to select Apple's interactive advertisements than they are a traditional online display ad.
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Previous Comments View All
Maybe he's right. Maybe this type of marketing is not something Apple can do well, despite their legendary marketing in other respects..
She, Carol is a woman. And judging on how Yahoo is doing as a company, I am not very inclined to accept what she is saying. Maybe she is right, but there is just as much of a chance that she is wrong. People have made tons of declarations about Apple before - many of them them have been shown to be incorrect.
In today's news: One competitor predicts demise of another competitor. Film at 11.
In Other news: The sun rose in the east today.
Their control over the App Store has not destroyed it: there have been a few high profile defections but that's all. I guess it all depends on the type of control: are they just stopping annoying or tasteless ads, or is it more than that?
The report indicated that mobile ads took about eight to 10 weeks to launch, which is much longer than the timeframe for other mobile ads. But Apple has taken such control because it believes the richly interactive ad experiences, which provide essentially an "app within an app," will provide a superior experience when compared to other services, which force users to leave the application and launch a browser.
.
This is because your typical mobile ad consists of a picture of a juiced male prostitute pushing Ripped Fuel. I anticipate that Apples entry into the ad field will raise that bar.
It's weird that Apple had to come up with something like iAd instead of ad-focused companies like Yahoo.
Just like it took Grand Central and Google Voice to make our phones better - while big telecom keeps charging outrageous rates for calling features that haven't been updated in years.
When a company like Yahoo gets caught asleep at the wheel they put down whatever the change is - until they can deploy their own version.
She, Carol is a woman. And judging on how Yahoo is doing as a company, I am not very inclined to accept what she is saying. Maybe she is right, but there is just as much of a chance that she is wrong. People have made tons of declarations about Apple before - many of them them have been shown to be incorrect.
What is their standing now (roughly)? 1/3 of all PC profits. 1/2 of all handset profits. Most profitable retailer per sq. foot. Do I even have to mention their PMP and tablet profits for the market?
I'm not saying she is right or wrong but I do think that she has got a pair of brass ones. I'm frankly surprised that she took a shot at Apple who she should be getting more cozy with rather than distant. 
Yahoo is still a great company but they were hemorrhaging talent and money for so long that I don't know if they'll ever recover fully. The deal with Micro$oft looks more like a long-term takeover rather than a simple advertising deal. Maybe I'm wrong but I see Microsoft pilfering through Yahoo for their technology and talent, and leaving a dry carcass behind after the deal is over. Microsoft is not a partner, they never have been good at that relationship. 
Personally, I'm on Yahoo and even Micro$oft's side over Google--I think they've been doing a lot of underhanded cr/p lately.
God forbid someone take the current state of today's crappy online advertising and give it some pep.
Even if Apple is wrong, it's annoying to read other companies talking what their competitors should and shouldn't do when they're not doing jack-shit themselves.
Personally, I'm on Yahoo and even Micro$oft's side over Google--I think they've been doing a lot of underhanded cr/p lately.
If people are so worried about Google then stop using Gmail and stop using their search, and watch them die in short order.
But I don't think that will happen. I for one just love Google Maps. I just browse around the world for the fun of it.
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Maybe she's right. Maybe this type of marketing is not something Apple can do well, despite their legendary marketing in other respects.
Personally, I see a lot of opportunity here for quality ads versus the ads that have plagued the internet for decades.
I also can't help but think of all the new areas of business that Apple has entered into with people stating that Apple can't possibly succeed because they are doing things differently than those that came before them. This makes me favour on Apple's side of things so I'll be keeping my Apple stock for another day.