updated 11:40 am EST, Wed February 23, 2011
Likely meant to address network's low fill rates
Apple has slashed the minimum spend needed to get into iAd in half, says All Things Digital. While the company initially set the iAd barrier at $1 million, hoping to attract wealthy, high-profile marketers, it is now said to be requiring only a $500,000 investment. Although still placing the ad network out of range for many firms, the change should increase the number of eligible parties.
Officially Apple is claiming over 60 successful iAd campaigns, and a 100 percent renewal rate. Behind the scenes though developers have been struggling with low fill rates, meaning that slots in some apps are going vacant, forcing developers to fill in with ads from other networks such as Google's. Even developers which were previously making substantial cash from iAd have been seeing falloff.
Beyond entry price, several issues are thought to be deterring marketers from signing up for iAd. These include a switch from high- to low-level negotiations, and the fact that iAd only reaches iOS devices, whereas companies like Google can target virtually any mobile platform. Apple is also said to simultaneously control where ads appear and prevent firms from learning the details.