Madison Avenue

Apple's iAd: The good and the bad

August 16, 2010: 6:40 AM ET

Two views of Cupertino's aggressive foray into the world of smartphone advertising

Source: Nissan

It's been four months since Steve Jobs unveiled iAd, Apple's (AAPL) bold bid to create a market for mobile ads that don't, in his words, "suck."

How's it going? That depends which report your read.

The truth, we suspect, is somewhere between happy and bumpy. The L.A. Times quotes executives at Nissan and Unilever -- the first two of Apple's 17 launch partners to get their campaigns up and running -- who say they are pleased with the click-through rates. Nissan says customers spent an average of 90 seconds -- ten times longer than usual -- with the very first iAd, for Nissan's electric LEAF car, and tapped on it five times more frequently than they did on the online version.

The Journal article points out that Nissan and Unilever were the only launch partners to have ads running for most of July, and that at least one of the partners -- Chanel SA -- has already dropped out of the program. The Journal's sources say that Apple's insistence that its engineers produce the ads, not the agencies' creative teams, is driving Madison Avenue nuts. According to the Journal:

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