With the recent announcements of Apple and the iAD release even thought the mobile networks such as Crisp, Millennial Media and a variety of others are launching services around iAD, I have been in discussion with many mobile ad networks that are a bit worried.

In the online advertising world there has been  the ad network business, the ad server business, the ad exchange business, the yeild management and analytics business and a variety of others. Even the buy and sell side have been separated to match the processes of the agency world.  In Apple’s endeavors to enter this space, they made a very interesting choice to be in the Ad Server, Ad Network, Ad Exchange and then manage the publisher relationships.  They went after the entire value chain!  At least is seems this way?

iAD could have been potentially an adserver strategy  like Doubleclick once was to the Ad Networks.  They had two products; one for Agencies and one for Publishers.   The only different would have been that  Apple integrated an Ad server like strategy into the platform, and then let the creativity come from the ad networks that surround around it.  The fact that Apple bought an ad network ( Quatto) to be part of iAD is like the analogy of  Google buying Doubleclick and integrating in an adnetwork.  Nothing is wrong with this when you are in a position to do so.   I think Apple might have been potentially wiser to stick with ad server like strategy over an ad network one for starters to be more neutral in the industry, as this is just my feeling as it would have been in alignment with the iphone platform strategy today…. just being sandwiched in the middle and taking a cut of the action.   To also become an  ad networks  would mean some level of competition to get brands to place ads via Apple versus the other ad networks for inventory…..time will certainly tell how Apple manages this, and even though being agnostic might had been a good first choice, they are in a great position build a great ad network for themselves and own everything since the world and users love the product.

Hard to be agnostic when you have the entire value chain and you want others to sit next to you, that is for sure.   It is like Apple becoming a record label trying to pull artists away from other record labels to join their network at the same time asking the record labels to link to their distribution…. I guess you can say they are doing this somewhat as well.   Apple has done a great job at being agnostic to a certain point even though it is a closed ecosystem.   There was a comfort in partnership and a long term trust from participants.

So I guess now that  they have the momentum, why not do it themselves? Google did this with Doubleclick.   Is this not like  it has been in the media world all the time? Companies do a lot of syndicating back and forth..  Disney definitely sells ads for its network, and so does most other media.   It is a clear indication that direct networks will stay  the predominate force for direct  network publishers.  I guess you could ask, how a company like Glam is any different?  They own a lot of publishers that are part of their focused verticals.  The difference I guess is that Apple now owns the entire thing ( the horizontal as well)  when content moves through the platform.