Apple struggling in iAd sales due to strict privacy policies

logo-iadApple is struggling to attract advertisers its iAd network due to its more restrictive privacy policies that limit the amount of customer information shared with advertisers, says a report in AdAge. Apple trails competitors like Google and Facebook, which are more permissive with they data they share.

One person familiar with the matter describes Apple as “the best-looking girl at the party, forced to wear a bag over her head” because it has a treasure trove of valuable personal data that it is not willing to share.

Apple knows names and addresses, geographic locations and app and music-purchase histories, and can show ad buyers that a group with specific characteristics also likes certain types of apps or music. However, its user tracking and ad targeting are not cookie-based, meaning agencies can’t do automated buys via their cookie-centric trading desks, which allow them to mesh lots of data from different sources. Instead, they have to go to Apple, ask to reach a given audience and, well, trust Apple that it will deliver it.

Apple earns advertising revenue from the ads it sells in mobile apps and iTunes Radio streams. The company accrued $258 million in U.S. mobile-ad revenue last year, which is minuscule compared to the $3.98 billion and the $1.53 billion that Google and Facebook earned, respectively.

Apple keeps a tight rein on its customer data, but it is trying to work with advertisers in other ways. Pepsi, one of the first advertisers on Apple’s new iTunes Radio, launched a branded radio station when iTunes Radio made its debut last year. The “Pulse #Now” channel is used to advertise multiple food and beverages from the Pepsi product lineup.

What do you think of Apple’s policy on personal information sharing and advertising?

Like this post? Share it!

Categories: Apple News, iTunes Radio