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Apple reduces rates to attract more mobile advertisers

Written by Rich Fiscus (Google+) @ 13 Dec 2011 5:42 User comments (2)

Apple reduces rates to attract more mobile advertisers When Apple introduced iAd with the iPhone 4 it was hailed as their answer to Google's AdMob. Both services provide in-app advertising for mobile devices.
But according to the Wall Street Journal, Apple's pricing and strict control over ad content have relegated iAd to third place in the mobile ad space, behind both Google and Millenial Media.

However, The Journal reports, they are trying to change that with new pricing options and free mobile marketing training. The biggest change is reportedly in the cost per tap and minimum spending level.

Advertisers will continue to pay $2 per tap, but the cost will be capped now. Just as importantly, rather than requiring a minimum commitment of $500,000, advertisers will be able to spend just $400,000. This amount had already been reduced from the initial requirement of $1 million when the platform first launched.

Apple is also offering marketers training sessions in their Cupertino, California headquarters. Advertisers meet with designers and product teams to learn more about creating ads suitable for Apple devices.

Ironically, it seems at least some of those marketers are of the opinion it is Apple who has more learning to do. Shiv Singh of Pepsico Beverages told The Journal, "They are still learning the advertising world."

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2 user comments

113.12.2011 6:05

Quote:
Advertisers will continue to pay $2 per tap, but the cost will be capped now. Just as importantly, rather than requiring a minimum commitment of $500,000, advertisers will be able to spend just $400,000. This amount had already been reduced from the initial requirement of $1 million when the platform first launched.
ROFL...iAd is just as overpriced as all the other apple products!


213.12.2011 11:22

CrApple is out of their minds. They're pricing their garbage higher than prime air time for a 10 second spot on the Super Bowl.

Something for nothing & on a completely enclosed captivated audience. Not to mention their forcing their would be clients to take 'reprogramming propaganda' classes to brain wash them into believing that the $2 dollars a tap is actually worth the expenditure.

Such a closed system is worth no more than .10 cents a tap & that's highway robbery at that. Given that they are requiring a stringent content pattern to be followed as well.


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