Apple Attempts to Obtain More Partners for iAds
The folks over at the Wall Street Journal
are reporting that Apple isn’t seeing the success they would like to see with their iAd platform. The Cupertino giant who deploys iAd as an advertising platform throughout their iOS devices is trying to make changes in the hopes of attracting more developers and ad spending in the program.
Apple is is reportedly lowering the entry level cost for marketers to $400,000 bringing it down from $500,000. This is even lower from the original $1 million price tag that the iAd platform first launched with. The company is reportedly putting new caps on what it charges for clicks on ads, allowing advertisers to pay $10 every time an ad is viewed every 1,000 times (CPM) and $2 every time the ad is specifically tapped on.
So you might be wondering why Apple is making these changes. The company tied in the lead in the ad market share last year but has reportedly fallen since then. Apple has fallen back to third place in the advertising market share in 2011, behind Google and Millennial Media, who hold the number one and number two spots respectively according to IDC Research.
Apple is also launching a training program to try and bring in more advertisers onto the network. The company is attempting to partner with OMD to educate new advertisers on iAds. Executives from Pepsi, Clorox, and J.C. Penney have apparently visited Apple’s campus to talk, with hopes of bringing more companies in next February as well.
I personally thought that the iAds were an innovative way to advertise on the iOS platform. With the sheer number of iOS devices that are used for media consumption, in theory the advertisements would successfully be seen by many people all over the world. At the same time, I can see where people would be hesitant to go with iAds though, with the prices being too high compared to competitor pricing.
What do you think? Share any thoughts in the comments below!
Source: Wall Street Journal