Apple reduces iAd pricing, revenue sharing
Apple is reportedly cutting the minimum cost of its iAd service again.
According to Ad Age, the threshold for advertisers to acquire the iAd service has dropped from US$500,000 to just $100,000. Furthermore, Apple will reduce revenue sharing by no longer charging advertisers when users click on an ad, as has been the case since iAd launched.
Apple’s iAd service has not seen the greatest of success. Having launched in 2010, Apple originally charged $1,000,000 for an ad campaign, but many of its initial clients abandoned iAd for services like AdMob, Greystripe, and Millenial Media who operate on multiple platforms.
Apple then reduced iAd’s minimum rate to $500,000 per campaign. And in July, 2011, Apple offered further incentives by lowering the cost to $300,000 under certain circumstances.
At the beginning of this year, Apple brought in former Adobe VP, Todd Teresi, to reinvigorate the service. The new price point seems to be the first step in getting iAd back on track.
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