Apple Once Again Offers Dramatic iAd Fee Reduction
In the short period of time since Apple introduced it's iAd mobile advertising platform, the company has slashed the initial buy-in rate by 70%. According to sources well informed of the latest happenings within the mobile marketing industry, Apple is facing substantial competition from rivals in the mobile ad space and can no longer compete with the original $1 million buy-in rate.
As it presently stands, $300,000 is the new buy-in rate for iAd clients (certain conditions reportedly apply), the latest indication that Apple is "struggling to parlay its technology leadership into success in the ad industry." Thom Kennon, senior vice president of strategy for the Young & Rubicam ad agency in New York, says “Apple’s closed ecosystem may have been interesting in the short run for advertisers, but in the long run they priced themselves out.”
In February, Apple first reduced the minimum ad purchase rate from $1 million to $500,000, and is now offering "deals for as low as $300,000" if interested advertisers "bring together multiple campaigns." So despite Apple's acknowledgment last winter of 60 "successful" brand campaigns for iAd and a corresponding "100 percent renewal rate," it's painfully obvious that iAd has struggled to obtain the mobile advertising dominance that Apple CEO Steve Jobs predicted upon the platform's debut last summer.
Although no one is yet calling iAd a sinking ship, Apple is clearly surrounding the platform with some "life boats," including former ad agency executive, Carrie Frolich, a well-known big-shot in the burgeoning mobile ad space. Additionally, Apple has rolled out a new online design feature (iAd Producer) to assist agencies in more efficiently and effectively designing their ads.