It was Apple's intention to pitch iAd as the cream of mobile advertising, providing premium products with a suitable medium rather than tailoring it as an ad platform for all and sundry.

Problem is, insiders claim most advertisers are yet to be convinced that premium mobile is a suitable and, more importantly, effective medium for their wares.

Hence, they're less likely to spending big bucks on iAd when there are cheaper alternatives on the table such as Google's rival AdMob network. 

That's the conclusion from a report by TechCrunch which claims while there are lots of apps running iAd, fill rates for the platform dropped drastically in early 2011 and are yet to recover.

Falling fill rate

According to two developers with iAd-equipped apps, the platform's fill rate has fallen from 18 percent in 2010 to its current standing of 6 percent.

What's more, some newer apps are reporting that none of their ad slots are being filled at all, while other ad networks continue to function normally.

It's a situation that's leading many to believe that iAd has its pitch all wrong.

"The general consensus among the advertising community is that it is a product they don’t want," one unnamed mobile ad tech CEO told the site, adding that the iAd business as a whole "is hurting".

One other problem cited is the fact iAd is limited to iOS only.

It is, of course, a factor everyone was aware of when the platform was launched in a blaze of publicity, but one that's becoming more of an issue as mobile advertising matures, given the majority of iAd's competition is built for a multi-platform environment.

[source: TechCrunch]