The Failure Of iAd
As we've written over on Seeking Alpha in 2 articles (I, II) about the Millennial Media (MM) IPO, device makers just aren't going to be successful creating systems such as ad networks that only target just the users of those devices. Clearly Samsung has learned nothing from Apple's failure.
On a bigger picture, this speaks to some of the issues Apple originally had in the PC market. It had the better PCs and operating system, but the ability of Windows based systems to create cheaper machines and more software eventually over took what Apple could do in a controlled environment.
Will history repeat itself again in the phone and tablet markets? For now, the answer is no. Developers prefer the iOS platform as users spend more money. Not to mention, all the apps created for Android and iOS systems are equal. The cheaper phones and volume hasn't led to a developer and software advantage at least yet either. When that happens, the time to evacuate the stock might be at hand.
Conversely, the iAd system faces those challenges. Shawn Scheuer wrote this article for Forbes highlighting the 5 reasons for failure of iAd. He is the CEO of Moolah Media so his perspective is very telling.
- It's (still) too expensive for too many advertisers. (requires $100K minimum)
- It forces advertisers to take a big gamble before seeing real results.
- It limits consumer reach dramatically.
- The better app experience, the worse the ad engagement.
- iAd's self-serve tool can't keep up.