Apple to Cut iAd Staff, Automate Ad Sales

Apple is tossing in the towel and plans to ax its iAd sales team. The iPhone and iPad maker isn't killing its in-app ad platform, but instead is building a new system where ad publishers create, sell, and manage ads themselves.

Apple plans to can iAd sales team, automate insteadApple plans to can iAd sales team, automate instead

Insider sources speaking with Buzzfeed said Apple plans to phase out its sales team as early as this week in favor of its new Web-based ad management system.

iAds hasn't been as successful as Apple expected in part because the company has maintained tight control over the ad design and approval process. By switching to a publisher-managed system, Apple hopes to draw in more advertisers and give the iAd platform a much needed boost.

That sounds like a good deal for Apple and advertisers, but could be bad news for the middle man companies that have been handling iAds for many companies. Now those publishers will be able to directly interact with iAds and most likely won't need help from outside firms. 

A system where advertisers have a lower barrier to entry seems like a good plan, but Apple will still need to keep a tight reign on ad quality or face becoming little more than another version of Google's Ad Sense. That said, it feels a little like Apple is giving up on making a better ad platform and falling in line with everyone else.

[Some image elements courtesy Shutterstock]