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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