Apple will close down its iAd App Network. The company will stop developments for the iAd app system in the first half of this year, as the organization’s representatives have written in an article on its official site these days.
It will not accept newly launched applications into this network, but promotional initiatives may be allowed to run, while businesses can earn marketing income until Jun 30, as the company’s announcement says.
Apple’s officials did not reveal their plans regarding mobile marketing, but affirmed that people seeking to advertise their applications via iAd can make an offer using the iAd Workbench. This announcement follows a series of informal reports appeared during the last weeks saying how Apple wants to put on hold its iAd selling team.
Meanwhile, it will enable marketers to sell service ads via a programmatic advertising and buying system. The company would allow people who want to continue their activity to keep the full amount of this generated income.
Tech sources said that this move may produce negative reactions from Apple’s associates like Rubicon Project, a business that started assisting the iAds platform in Nov 2014. There are other specialists who do not thinks that this information is a shock for those in the field.
In 2014, Apple’s officials called the iAd network an extremely small element of Apple’s gigantic activity. Experts reported that the program has taken only 5% income s of the American cellular advertising business and they do anticipate it to increase.
In 2016, financial and commercial forecasts predict the company to have 5.5% share of the marketplace. Google took almost 10 percent, while Facebook dominated the industry with about 38% share over last year.
Both organizations will probably lose some percentages of their market share in the next 12 months, decreasing a little bit to 37% and 7.9%, respectively. These losses for Google and Facebook will be reversed in 2017, reaching 9% and 39.5% respectively, according to the estimations.
The statement is somewhat confusing, but it not means that all iAds are being stopped. App designers will be allowed to display banner ads in their software, but the stock applications to promote will not be available in the App Store.
This is an advantage and a problem, since it will not help iAd enhance its marketing rates. The ROI on this kind of promotions was considerably reduced because the creators’ share was also considerably decreased.
Obviously, the idea is to get iAd on other completely automated platforms developed for ad systems such as Google’s AdSense, where marketers and promoters easily start ad strategies with computerized income and costs.
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