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At least one company of iAd’s 17 launch partners is dropping their efforts for now, pointing to early problems and delays that Apple (NSDQ:…

Apple iPhone Os4 Steve Jobs2
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At least one company of iAd’s 17 launch partners is dropping their efforts for now, pointing to early problems and delays that Apple (NSDQ: AAPL) is facing as it jumps into the mobile advertising business. Chanel says it no longer has plans to launch an advertising campaign on the iPhone, and while a spokeswoman declined elaborate, the WSJ reports that early challenges are stemming from advertising executives having to get used to Apple’s tight control of the ad-making process.

Both advertisers and developers are excited about the potential revenue-making and branding opportunities of iAd, and some early results have pointed to positive results. For instance, a Nissan spokeswoman said the rate of users tapping on the banner is five times the click-through-rate of its Nissan Leaf campaign online.

But generally, iAd, which was announced in April and launched in July, has been slow to roll out. In April, Apple announced that it had 17 launch partners for iAd and had already secured $60 million in advertising dollars. But by July, the WSJ reports that only Nissan and Unilever had rolled out campaigns with many of the remaining 17 waiting to launch for back-to-school programs. Chanel seems to be the only one that doesn’t have any current plans to participate anymore, while Citigroup is “taking a phased approach and working closely with Apple to ensure everything is working properly” due to the newness of the technology and platform, said a Citigroup spokeswoman.

For the most part, the delays seem limited, especially for a service that has only been public for four months and live for slightly more than a month. Advertising execs say the entire process — from brainstorm to completion — can take roughly 10 weeks, which is longer than most mobile ads, and that sometimes the actual building of the ad, which is handled by Apple, can take two weeks longer than expected.

By Tricia Duryee

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  1. The whole iAd this is such an unproven channel, I just don’t see how these companies (other than being the first to have iAds) will see any real return on this level of investment.

    Once the initial round of iAds have run and the novelty has worn off, what will we expect to see?

    Brad Down
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