Apple is once again cutting the minimum amount it charges advertisers to run a campaign on its iAd mobile ad system and boosting the amount it pays mobile app developers, reports “Ad Age” (http://macte.ch/XVbil).
iAds combine the emotion of TV advertising with the interactivity of Internet advertising, according to the late Steve Jobs, when he introduced the service in 2010. He said iAds, which are built into iOS 4 and later, allow users to stay within their app while engaging with the ad, even while watching a video, playing a game or using in-ad purchase to download an app or buy iTunes content.
Advertisers will now have to spend justUS $100,000 for Apple mobile campaigns running in iPhone and iPad apps, down from a previous $500,000 threshold and a significant reduction from the initial starting price of $1 million in 2010, when Jobs unveiled Apple’s first ad product.
In addition, app developers will receive 70% of ad revenues from iAds running on their apps, compared to a previous 60% cut, notes “Ad Age.” Apple also plans to change the way it charges for ads, “which irked some advertisers and agencies,” notes “Ad Age.”
“Since iAd launched, Apple has charged advertisers twice: a fixed rate for every 1,000 ad impressions plus an additional fee every time a user clicked on the ad,” the article says. “Apple will now charge only the cost-per-thousand rate.”