Edible Apple

Bloomberg is reporting that Apple’s mobile ad business is struggling to attract and retain customers, so much so that Apple has cut its buy-in rates by as much as 70% as advertisers have spoken with their wallets and taken their business elsewhere.

Even with lower prices, some advertising agencies are balking at iAd’s cost, especially because the promotions only reach Apple users. They’re turning instead to Google’s AdMob, Millennial Media and Greystripe, which serve a range of devices. That means Apple risks losing ground in a market that will generate $2.5 billion by 2014, according to EMarketer Inc.

“Apple’s closed ecosystem may have been interesting in the short run for advertisers, but in the long run they priced themselves out,” said Thom Kennon, senior vice president of strategy for the Young & Rubicam ad agency in New York.

Apple, as a company, has never really had its heart set on the ad business and seemingly entered it because it saw a number of third party companies making a lot of money via ads on its mobile app ecosystem. But as is the case when any company decides to enter a market where they have little experience, the ultimate result has been somewhat of a letdown for Apple.

A lot more in the full story over here.