Why Apple's iAds Haven't Taken Off

steve jobs iad

Photo: Associated Press

Apple’s iAds are one of the company’s few mediocre products since Steve Jobs took over.With VP of mobile ads Andy Miller leaving to become a venture capitalist we asked a plugged-in mobile source what they think is going on with Apple’s ad product.

Here’s our source’s take:

  • Apple isn’t delivering a big audience. With iAds, you only get access to iPhones, iPads, and iPod Touches. A good audience for sure, but it means you’re missing out on over 70% of the people in the world.
  • Android is exploding and iAds don’t reach Android users. If an advertiser wants to reach an Android users, it has to use a second ad network. That’s an extra layer of complexity.
  • Other companies can do rich media ads for less money. The sexiness of Apple has dimmed. Now iAds have to compete on price and other traditional ad selling techniques. It’s losing sales people, and iAds are still overpriced.
  • Advertisers don’t know if Apple is committed to iAds. We’re not sure how important this really is, but Apple has seemingly pulled back its support for iAds. At the first WWDC following Apple’s launch of iAds, Steve Jobs spent a bunch of time talking about iAds. This year, there wasn’t a peep. If Apple isn’t committed, why should advertisers be?

From our perspective, it sounds like what works for Apple’s products doesn’t work for advertising. You can’t be closed and proprietary for advertisers who want to reach as many people as possible.

It looks like it’s time for Apple to rethink its approach to the ad market.

If you’ve worked with Apple on iAds, or you’re in the mobile ad space and you have something to add, please contact us at [email protected] or call at 646-376-6037.

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