Apple Makes Changes to iAds to Attract Advertisers

Apple is currently experiencing one of its most successful stretches in company history, yet their iAd service has failed to pick up any traction over the past few years. Last year, it was reported that once top tier iAd clients such as J.C. Penney and Citigroup had flocked to competing advertising companies such as Google’s AdMob, claiming that iAd was simply too expensive. Additionally, companies advertising with iAd felt that their ads weren’t getting enough exposure because they are limited to the iPhone, iPod touch, and iPad.

So, when those clients called it quits, Apple decided to drop the minimum buy-in price for advertising campaigns from $1,000,000 to only $300,000; yet, nevertheless, the iAd platform continued to decline in growth. Despite holding a modest 19% share in the mobile advertising industry in 2010, Apple’s iAd platform has since slipped to just fifteen percent in market share. And, yet again, Apple has made changes to iAd to try to attract advertisers…

The latest move that the Cupertino-based company has made is reducing the minimum buy-in price yet again, now set at just $100,000; that’s a ninety percent decrease for the minimum buy-in price since iAd was launched with an initial buy-in of one million dollars. Furthermore, Apple has eliminated the fee that it once charged each time an advertisement was clicked — or tapped, should I say? — and will now only charge for every one thousand ad impressions as it always has. But, with Android devices outnumbering those running iOS, it will be interesting to see what path advertisers take in the future, even with these extra incentives offered by Apple.

[Ad Age via iClarified]

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