Apple Insists on Keeping User Data Private, and It’s Hurting iAd Sales

Maintaining the privacy of users has always been a major concern at Apple, to the point that it’s apparently affecting the success of the Cupertino giant’s iAd business, reports AdAge. Ad buyers say Apple is “downright stingy” with its customer information, and that it has no real drive to “foster relationships.”

The data the buyers want focuses on our geographical locations, purchase history, and media interests–in short, the kind of information that’s raised privacy concerns directed at Google and Facebook–but Apple will have none of it. In the words of one critic, it’s like requiring “the best-looking girl at the party…to wear a bag over her head.”

The iAd service first appeared back in 2010 as a method of letting developers earn additional money, but it’s been little more than an “afterthought” until iTunes radio came along. Even now, with some tweaks, it doesn’t attract much attention.

In the words of AdAge, “Perhaps the biggest issue hindering their ad growth is that advertising is an afterthought, a blip on the balance sheet. It’s still viewed by some as immaterial and potentially detrimental to the cash cows — an ad is an impediment if it distracts a consumer from the “buy” button or mucks up a beautiful mobile app.”

That’s not to say Apple’s not interested in ads; after all, iTunes Radio debuted with ads from such influential (and widely appealing) companies as McDonald’s and Macy’s. Even so, it’s a hobby at best. Apple’s $258 million in advertising revenue from 2013 might sound impressive at first, but it’s nothing compared to the $3.98 billion earned by Google. Still, iTunes Radio’s growing popularity could mean that number will go up in spite of the protests of Apple’s critics.

Apple seems to figure that it’s doing fine on its own merits, and until it isn’t, it look as as though our data’s safe.

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