Six years after launching iAd, Apple will be shifting to a more automated platform, while making an exit from the advertising-sales business. The new platform will be accessible to app publishers and advertisers as well. In addition, the company will reportedly not have any involvement in selling or creating iAd unit.
According to a report by BuzzFeed, a source has stated, “It’s just not something we’re good at. It gives them direct dialogue with their customers as opposed to forcing them to go through an Apple middleman. Access will be more plentiful and easier to manage, theoretically.” The company is reportedly phasing out its iAd sales force entirely and updating the iAd platform that publishers can sell though it directly.
Originally launched in 2010 by Steve Jobs, iAd was a platform which will allow ads to be placed directly in the iPhone or iPad apps, with the company taking a cut of the revenue for selling and hosting the material as well. For reasons unknown, the iAd platform never really took off as Apple imagined it would.
The report further adds, for Apple, who has struggled to establish the platform for mobile advertising, the decision to dismantle the iAds salesforce and adopt a new publisher-driven platform is a tacit acknowledgement that the company grievously underestimated how tough the new business would be.