Apple Slashes iAd Buy Rate in Half
In a move that suggests mobile marketing sticker shock was too much for most advertiser to bear, Apple has reportedly slashed its $1 million minimum advertising buy for iAds by as much as half. Hoping to draw small to mid-sized advertisers into its digital ad program, the going rate to get your brand on the iAd bandwagon is now an estimated $500,000 - not a small chunk of change, but certainly more reasonable than the previous astronomic entry level.
“This new minimum buy is a great step forward and a necessary one, I think,” Mark Read, CEO of WPP Digital tells John Paczkowski of Digital Daily
, which broke the news. “Lowering the minimum buy to $500,000 from $1 million will certainly make the platform more appealing.” As of late 2009, however, when Apple acquired Quattro Wireless for $275 million, the writing was on the wall that Apple would push a new advertising platform. And no one expected it to be cheap. But, perhaps its also fair to say, no one expected it to be so insanely expensive either.
Despite Apple's acknowledgment of 60 "successful" brand campaigns for iAds - and a corresponding "100 percent renewal rate," it's no secret that iAds have struggled to attain the lofty levels of mobile advertising dominance that Apple CEO Steve Jobs predicted upon the platform's debut last summer. Notwithstanding the perceived "arrogant initial asking price," Apple may experience a resurgence in interest among advertisers now that the buy-in rate for iAd mobile advertising has, for the most part, come back down to earth.