Apple’s iAd system has won the scorn of Yahoo CEO, Carol Bartz, who told Reuters last night the ad system will “fall apart for them”.

Bartz believes most advertisers will eventually reject Apple’s ad system because the company demands too much control over what advertisers do.

“Advertisers are not going to have that type of control over them. Apple wants total control over those ads,” she said, though she conceded that Apple’s effort is “ok for experimentation.”

Last month we learned that Apple’s controlling nature has seen some slow-down to the unfurling of new camaigns via the iAds system. d agencies complained at problems dealing with Apple’s notoriously over-controlling nature.

Apple named 17 launch partners for iAd — but of these just Unilever and Nissan have had iAd campaigns in July. Other campaings, including campaigns from Disney and JC Penney, began last month.

The problem right now is that Apple is handling ad unit production as it develops tools for external agencies with which ads can be designed in future. This means ad agencies “don’t necessarily know what it is capable of or how to use the technology, one ad executive said.”

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