iAd placements rates said to be cut by 70%

Apple is reportedly slashing prices for iAd campaigns, as many advertisers are said to be departing from the platform. Unnamed sources have told Bloomberg the company is cutting its rates by as much as 70 percent in an effort to woo wary advertisers, many of which are said to be gravitating toward alternative platforms offered by companies such as Google.

Early partners in the iAd program were reportedly paying $1 million or more to secure contracts on Apple's platform, however many of the first companies to sign up have since left. The sources suggest companies can now enroll in the program for prices starting around $300,000 for multiple campaigns, with a minimum purchase of $500,000.

The high cost of entry is blamed as one of the reasons advertisers are looking elsewhere. Companies are also said to be focusing on platforms that reach a wider range of mobile platforms, rather than limiting ad campaigns to iOS devices.

Aside from the cost and limited reach, early reports suggested some advertisers were turned off by Apple's tight controls over advertising content. Advertisers complained that Apple slowed down the process by maintaining involvement in the entire development process.

Despite the criticism and defecting advertisers, Apple's new pricing strategy may be working to bring in new partners. The company is reportedly preparing to add approximately 50 new campaigns through the next several months.

by MacNN Staff