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iAd placements to cost up to $10 million?

updated 10:00 am EDT, Thu April 29, 2010

Costs would be unprecedented in mobile ads

Apple is hoping to charge extremely high premiums for participating in its iAd mobile advertising service, according to sources for the Wall Street Journal, which include ad executives. iAd differs from normal advertising on Apple handhelds in that promotions can launch within an app, while still pushing interactive and multimedia content on viewers. Apple is said to be asking nearly $1 million, however, for placing a spot under iAd in 2010.

Ad executives say that such a price is several times standard rates, which for equivalent mobile deals would be between $100,000 and $200,000. One source claims that Apple is charging even more for companies hoping to be among the launch advertisers in June, potentially as much as $10 million. Even then Apple is said to be asking for greater control over how marketing is presented on its platform.

This includes hands-on approval and development from Apple, at first, to meet functional and aesthetic criteria. A development kit will be released eventually, but in the meantime, some parties are are said to be wary about giving up creative freedom. Also, while iAd is said to offer potential for mobile advertising profit, other complaints suggest that the technical demands of iAd may make it no easier to work with than the alternatives, such as AdMob.

Regardless, ad agencies in Boston, New York, Los Angeles and San Francisco are said to be listening to pitches for iAd, and in some cases talking deals, or preparing initial campaign ideas. The pricetags for Apple's system are said to derive from impression fees; while simply displaying an ad should cost an advertiser a penny, if someone actually taps on one, the fee jumps to $2. Companies will moreover have the privilege of targeting people based on their downloads at the iTunes Store, in addition to broader criteria like a viewer's city.

by MacNN Staff



  1. iphonerulez

    Joined: Dec 1969


    I like Apple's revenue-getting style...

    I just hope it doesn't backfire on them. I'm not sure how consumers are going to take to those ads. I think ads are useful for consumers but I hear a number of people saying they hate ads. I grew up with ads and commercials and I've gotten used to them. I've learned quite a bit from ads and commercials. If I have a choice of clicking on ads or watching commercials to get free content, I'm all for it.

  1. andrewbw

    Joined: Dec 1969


    don't care, won't click

    I always buy the ad-free versions of programs for my iPhone. I ad block on the web, or buy the subscription version of websites and services I use (ArsTechnica, Slashdot, Pandora) that offer an ad-free version. I DVR the TV I watch and FF the shows, or buy them off iTunes and watch via AppleTV.

    Advertising is obnoxious, and I wince at Apple legitimizing it this way.

  1. WiseWeasel

    Joined: Dec 1969


    (raises pinky to mouth)

  1. PRoth

    Joined: Dec 1969



    So I wonder...

    - will we be able to disable the iAd "feature" platform-wide or by-app? Will you be able to say, within an app, okay I've seen this ad, make it go away now. Would Apple give you the ability to turn off iAd as a setting for the whole iPhone or iPad? You know, give you the ability to decide when you feel like being exposed to advertising...
    - will the presence of free ad-infused apps drive the price of paid apps higher than they've been?
    - will you be able to filter ad-infused apps from paid apps in the App store? Maybe I'd prefer not to even see the iAd versions of apps at all...?

    Some advertising is useful, and some advertising is neat and creative, but by and large, it's just annoying. If someone could come up with a way to display an image in toilet bowl water without it being disturbed while I take a leak, there'd be an ad there. Except there'd be significant discussion on color accuracy and how to compensate for all that yellow.

    You either love or hate Apple. But iAd, if implemented without enough choice/freedom has the potential to turn a number of Apple-lovers to Apple-haters. We'll see...

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