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Apple cuts minimum iAd buy price in half

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.






by MacNN Staff

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Comments

  1. PRoth

    Joined: Dec 1969

    +3

    No way!!!

    You mean that people are getting tired of looking at advertising?! Even on the iPad and iPhone?! Users obviously are holding it wrong... :)

    Love Apple products, tolerate their recent practices... but iAd, and the potential of having ads everywhere, even the desktop OS, has got me feeling nauseous.

  1. wrenchy

    Joined: Dec 1969

    +1

    Apple, give it up.


    Leave the real advertising to the pro's.

    Why does Apple have to get into everything Google does? Give it up.

  1. ilovestevejobs

    Joined: Dec 1969

    -5

    Here is an idea.

    Just turn off the life-support system hooked to Steve Blowjobs and give someone with a brain and who is in touch with reality the job to lead Apple.

  1. testudo

    Joined: Dec 1969

    0

    well

    The main problem is Apple is trying to make iAd into the cadillac of advertising, working as ad agency and delivery model. And only major products need apply. No silly little ads for stupid game developers.

    And, really, did people think that the initial surge of iAd traffic was due to "effectiveness" of the advertising vs. just fanboys going "Wow, this is new. Let's check it out!"

    It's like the failure that is Ping. It had that initial oomph, and then fallen into the depths of "Ping? Is that still around? I thought it failed along with MySpace. What? MySpace is still around?"

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