Campaign delays hamper Apple's iAd rollout

Roughly six weeks after Apple (NASDAQ:AAPL) formally introduced its iAd mobile advertising network, campaign delays continue to undermine the service, with at least one announced pre-launch partner appearing to mothball its plans for now. The Wall Street Journal reports that among the 17 iAd partners Apple named prior to the system's July 1 rollout, only Unilever and Nissan officially unveiled campaigns for the duration of the month--Citigroup, the Walt Disney Company and J.C. Penney have since launched iAd campaigns, and other confirmed partners remain in the mix. However, luxury marketer Chanel--another announced iAd partner--said it no longer has plans to introduce a campaign, declining further comment.

Marketers blame the delays on Apple's insistence on retaining tight creative control over the iAd development effort--execs say the average iAd requires eight weeks from inception to completion, far longer than the norm for mobile ads. One source said the actual ad creation process, supervised by Apple, typically requires two weeks longer than anticipated. Another headache: Apple does not inform marketers where their iAd campaigns will appear, and does not allow advertisers to limit where their ads do and do not run.

Despite the hiccups, a Nissan spokesperson told the Journal the iAd campaign for its all-electric Leaf vehicle "has driven exceptional results to date," adding that the number of consumers tapping its iAd banner enjoys a click-through rate five times greater than its corresponding web campaign. In addition, a source says more than 10,000 iPhone and iPod touch developers signed up for iAd in the network's first month--developers receive 60 percent of revenues derived from iAds integrated into their applications.

Most marketers are spending a minimum of $1 million to launch on the iAd network, with some paying more than $10 million for levels of exclusivity within their respective industry vertical. Apple is charging $10.00 per thousand impressions for each iAd banner as well as a cost-per-click fee of $2.00. iAd could yield developer revenues reaching $825 million this year, according to a research note published in May by Bernstein Research analyst Toni Sacconaghi. Estimating that iPhone developers presently generate $1 billion to $1.8 billion in annual App Store sales, Sacconaghi notes that iAd revenues will herald an annual increase between 40 percent and 80 percent. Sacconaghi anticipates Apple will collect about $815 million from iAd this year: $550 million from apps and $265 million from media providers like publishers and television networks. He adds Apple will generate roughly $58 billion in total worldwide sales this year.

For more on iAd's rollout:
- read this Wall Street Journal article

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