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