Apple (NSDQ: AAPL) has once again cut prices on its iAd system for rich in-app advertising on iOS applications, according to a report, as ad buyers continue to balk at the up-front cost of participating in Apple’s vision of how mobile advertising should work.
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AdAge reported Tuesday that Apple is now asking advertisers to commit just $100,000 in order to place advertise within iAds, down an enormous amount from the $1 million required when the program was first unveiled in 2010 and a significant discount from the $500,000 spend that Apple was asking for as recently as last year. According to the report, Apple also now plans to let developers keep 70 percent of the revenue they generate through advertisements within their ads and has dropped a cost-per-click charge, reverting to the familiar cost-per-thousand-impressions model.
iAd was a compelling idea when it made its debut. Mobile advertising has a ton of promise but ad formats created for other devices don’t necessarily work on the small screen found on the iPhone. Apple’s iAd allowed advertisers and brands to create compelling ad experiences with video and rich graphics, but the simpler quick-and-dirty in-ad formats favored by companies such as Google’s AdMob (coupled with the ability to spend limited amounts as advertisers experiment with mobile) has proven more compelling.