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Minimum advertising buy for Apple's iAd halved to $500K

post #1 of 10
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Apple has cut in half the minimum purchase of $1 million for advertisers on its mobile iAd network, in an effort to attract smaller companies that couldn't afford the initial asking price.

According to John Paczkowski of Digital Daily, Apple has introduced a new entry price of $500,000 for companies that want to buy interactive advertisements on the iAd network. The company hopes that reducing the initial $1 million minimum buy will broaden the platform.

Earlier this month, a report claimed that Apple's iAd business recently began "hurting" after a strong start, with rumors suggesting that Apple was struggling to fill slots and renew contracts. Paczkowski said the price cut for iAds aims to "reverse that trend, bringing more brands to the platform and an increasingly larger portion of their annual ad spend to Apple."

Apple launched iAds in the U.S. in July, and the network got off to a strong start with major user interest pleasing advertisers, and strong revenue returns satisfying App Store developers. Apple's iAds offer rich, interactive advertising experiences from within an application, preventing the need for users to leave what they are doing and launch the Mobile Safari browser on the iPhone or iPad.

But while Apple initially found a significant share of market share, its strict control of content frustrated some advertisers, who said that the company has maintained "tight control over the creative process." Those controls were said to have caused advertisers delays in getting their iAds to market.

Apple jumpstarted its plans to enter the mobile advertising business in late 2009, when it acquired the firm Quattro Wireless for $275 million. Employees from Quattro, which one report said are responsible for securing renewals from advertising partners, allegedly had difficulty getting companies to secure $1 million or more for an iAd campaign.
post #2 of 10
Fingers crossed it picks up!
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Use duckduckgo.com with Safari, not Google Search
Been using Apples since 1978 and Macs since 1984
Long on AAPL so biased. Strong advocate for separation of technology and politics on AI.
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post #3 of 10
they'd put to high a limit, what were they thinking of?
post #4 of 10
One imagines that the other half of the issue is definitely creativecontrol. If you want director "x" or designer "a" and not apple people.

Apple manages to curate 300,000 apps, with a "comprehensive" do's and don't list so how come they can't dothe same for ads, lp and extras. There are far fewer and the cost of developing (not delivering) an ad campaign is equal or way less than software development so the advertisers haven't exactly got more on the line.
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you only have freedom in choice when you know you have no choice
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post #5 of 10
500K is far more reasonable. I hope iAd takes off because I'm becoming frustrated with that dodgy company that is Google.
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Citing unnamed sources with limited but direct knowledge of a rumoured device - Comedy Insider (Feb 2014)
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post #6 of 10
Quote:
Originally Posted by Ireland View Post

500K is far more reasonable. I hope iAd takes off because I'm becoming frustrated with that dodgy company that is Google.

I hope so too. iAds are the only ads I'll click on because most other ads take you out of the app and iAds are the only ones that I can be sure won't take me out of the app. Plus Google doesn't seem to screen their advertisers at all, so there are some pretty dodgy companies that use Google ads. I wish more developers used iAds, because I like supporting developers of free apps by occasionally clicking on the ads.
post #7 of 10
Quote:
Originally Posted by Mynameisjoe View Post

I hope so too. iAds are the only ads I'll click on because most other ads take you out of the app and iAds are the only ones that I can be sure won't take me out of the app. Plus Google doesn't seem to screen their advertisers at all, so there are some pretty dodgy companies that use Google ads. I wish more developers used iAds, because I like supporting developers of free apps by occasionally clicking on the ads.

The best part of iAd is not only the guarantee Apple won't share your information, but the fact that "I KNOW" when I tap that "X" the ad will close. You feel secure in knowing that. I like that. That, and the fact that I don't trust Google.
Citing unnamed sources with limited but direct knowledge of a rumoured device - Comedy Insider (Feb 2014)
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Citing unnamed sources with limited but direct knowledge of a rumoured device - Comedy Insider (Feb 2014)
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post #8 of 10
But is $500k expensive or cheap? I'm not into advertising, and have no idea what an ad costs. Is Google asking for a similar 'downpayment' like Apple?
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"See her this weekend. You hit it off, come Turkey Day, maybe you can stuff her."
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post #9 of 10
So if Apple were to cut in half the one million in hopes of attracting small and medium size businesses, does that mean large business who have the money still have to fork over the one million OR is it that not enough of the large businesses that can afford the one million asking price are not really into the Apple way when it comes to iAd and advertising and marketing? I think there are a lot of issues going on with iAd that Apple only glosses over with a vague statement here or there regarding how successful the current whole iAd thing is going. Oh, to be a fly on that wall!!! \

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Ten years ago, we had Steve Jobs, Bob Hope and Johnny Cash.  Today we have no Jobs, no Hope and no Cash.

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post #10 of 10
Quote:
Originally Posted by Ireland View Post

500K is far more reasonable. I hope iAd takes off because I'm becoming frustrated with that dodgy company that is Google.

Are you kidding me? 1c would be far more reasonable. That's what Google is offering and until Apple offers the same thing, they will continue to lose in the ads business.
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