Yahoo CEO Says 'Total Control' Will Hurt Apple's iAd

Yahoo CEO Carol Bartz thinks Apple's iAd initiative will "fall apart," Reuters reported Thursday. In an interview, Bartz pointed to Apple's "total control" over ads for its new advertising platform.

Apple launched the iAd service this summer to deliver ads to its iPhone and iPad. The advertising platform began with Apple's acquisition of Quattro Wireless earlier this year. Apple plans to shutter Quattro on Sept. 30.

'Total Control' a No-No
Advertising on the iPhone must be done through iAd or pure-play mobile Relevant Products/Services networks such as Jumptap and Millennial Media. That blocks ads from Google's AdMob and other advertising companies. Apple is reportedly asking for $1 million commitments to run iAd campaigns and is said to be requiring some creative control over advertising content.

"That's going to fall apart for them," Bartz said. "Advertisers are not going to have that type of control over them. Apple wants total control over those ads."

A key feature of iAd is interactivity, which is intended to keep ad viewers within apps from Apple's App Store and generate revenue for third-party developers. Apple takes 40 percent of the advertising revenue and some advertisers, including Nissan, have reported much higher click-through rates than other mobile ads.

Bartz also said Yahoo's transition to Microsoft's Bing search engine should be complete next month. The companies have agreed on a 10-year partnership to take on search market leader Google.

She predicted that online advertising will pick up in 2011. "After the transition, I think we'll see a dip for a while just because it will be inefficient for a while, but by mid-next year I think we'll see the [revenue per search] come up on the site," Bartz said. She added that demand for Yahoo video ads remains strong.

Yahoo Won't Sell Alibaba Share

Yahoo owns 39 percent of Chinese Internet company Alibaba Group and has no interest in selling it back, Bartz said, noting that Alibaba "constantly" inquires about a repurchase. "People are wringing their hands about what to do in the China market ... this is a great way to get upside in the China market," Bartz said.

The Yahoo CEO played down reports of tension between the companies. She said she expects Alibaba CEO Jack Ma to "do a great job in the company."

Source : newsfactor.com