February 15th, 2012

Apple cuts iAd prices again

Apple iAdApple is rumoured to have cut prices once again on its iAd sys­tem for mul­ti­me­dia in-​app advert­ising on iOS applic­a­tions, accord­ing to a report in AdAge.

AdAge repor­ted that Apple is now ask­ing advert­isers to com­mit just $100,000 in order to place advert­ise­ments within iAd. When Apple launched iAd in 2010 advert­isers were asked to com­mit $1 mil­lion, which was then reduced to $500,000 in 2011.

It is also thought that Apple now plans to let developers keep 70% of the rev­enue they gen­er­ate through advert­ise­ments within their ads and has dropped a cost-​per-​click (CPC) charge, revert­ing to the famil­iar cost-​per-​thousand-​impressions (CPM) model.

iAd is Apple’s answer to cre­at­ing enga­ging advert­ising on small screen mobile devices, enabling advert­isers to use video and rich graph­ics. How­ever, advert­ising plat­forms offer­ing a more flex­ible pri­cing model and a lower cost of entry, such as Google’s AdMob, have proved more attract­ive — espe­cially as advert­isers exper­i­ment with mobile — even if the plat­form only sup­ports a more basic form of advertising.

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