Apple is closing the Quattro Wireless mobile advertising network it acquired early in 2010 for US$275 million, in order to focus its efforts on its recently announced iAd proposition. According to a statement on the Quattro Wireless website, “we are no longer accepting new campaigns for the Quattro Wireless Network, and we will soon begin winding down existing campaigns. As of September 30, we will support ads exclusively for the iAd network”. Apple launched iAd on July 1, 2010, to serve devices running on its iOS platform, whereas Quattro Wireless delivers content to devices powered by a number of platforms, including the Google-backed Android operating system. The Wall Street Journal said that many of the Quattro team have already played a key role in creating iAd; it was not revealed if job cuts will follow the Quattro closure.

Initial reports indicated a mixed response for iAd, with advertisers and publishers impressed with the results delivered, but unhappy about delays to campaigns as agencies attempted to learn the new system “amid Apple’s tight control over the creative process.” Reuters suggested that Apple had been charging much higher rates for advertisements placed via iAds than the Quattro Wireless network, creating a service discrepancy among its own mobile advertising properties; by concentrating on iAds, it is able to position itself as a high-end niche player, much as it has already done with its mobile devices. The mobile advertising space has been something of a hot topic in recent months, with Google buying AdMob and Research In Motion also reported to be planning a move, after a long period in which the market was nascent.