As Apple embarks on becoming somewhat of a media company, it's stumbling in a Microsoft-like fashion.
According to Business Insider, Apple is having trouble selling iAds—its much ballyhooed in-app ad product—and retaining sales talent.
The company recently slashed the entry price of iAds from $1 million to $500,000. However, Business Insider reported, Apple’s sales team has very little flexibility to negotiate—something most media buyers don’t respond well to. Media buyers are used to third-party ad serving, which Apple balks at.
There are already too many other ways for buyers to advertise on the iPhone and iPad without going straight to Apple. For example, as Business Insider noted, most mobile ad networks allow for device-level targeting. Companies like appssavvy and Pontiflex offer ways for brands to place ads directly on apps at a much cheaper price.
iAd's lack of momentum is making it tough for Apple to hold onto talent, as insiders doubt its commitment to the media business—something tech giant-turned-part-time-media-company Microsoft has long had to deal with. According to Business Insider, Apple has 21 iAd job openings.