Adidas Allegedly Cancels $10 Million Contract with Apple iAd

It has been rumored that the sports apparel manufacturer Adidas has dropped its advertising contract with Apple‘s iAd.  The advertising contract was worth $10 million.

Apple’s iAd has been expected to rival Google‘s advertising ventures, including the company’s takeover of AdMob.  However, if the rumors surrounding Adidas’s contract are true, then is is not the first time a company has ended a contract with Apple and could prove problematic.

According to the rumors, the German-based company Adidas dropped the contract because Apple wanted too much control over the advertising process.  Apple allegedly wanted full creation of the ad.  Similarly, Apple was not transparent enough about where the advertisement would appear nor about the amount of third-party advertising serving tools.

In theory, iAd is a very useful tool for companies, appearing inside iPhone applications and allowing users to click on the ad without leaving the browser.  However, the control Apple is insisting on having could prove to be the company’s downfall.  In August it was reported that large companies like AT&T and Nissan were put off by Apple’s strict advertisement guidelines that were delaying the release of their ads.