Home  › Media › Mobile
nissaniad

Apple Halves Minimum iAd Spend to Speed Advertiser Uptake

  |  February 23, 2011   |  Comments

Sixty brands have bought iAds so far. With price cut, Apple aims to significantly increase that number.

nissaniadApple has halved the minimum spend for campaigns on its iAd mobile advertising network, lowering the bar for advertisers as it looks to move beyond its first wave of partners. Since announcing the product last April the company has demanded a minimum $1 million investment per campaign, which will now be reduced to $500,000.

The company has already dropped its minimum spend policy in Europe to attract launch sponsors there, according to reports.

At present iAds are sold on a combined performance and impression basis, with inventory priced at a $10 CPM coupled with a $2 click-through charge. That pricing structure will remain unchanged following the reduced minimum, meaning advertisers won't pay less for their inventory but will essentially commit to buying less of it.

That suggests Apple expects to generate similar revenues from iAd campaigns despite generating less per campaign. Of course, the change could also reflect the inability of Apple's sales staff to generate advertiser interest under the previous terms. "This new minimum buy is a great step forward and a necessary one, I think," Mark Read, CEO of WPP Digital told AllThingsD, adding that the new minimum buy will make the platform "more appealing."

That doesn't necessarily detract from the value of the $1 million investments made by the iAd launch sponsors, which included Nissan, Unilver and AT&T, thanks to the added impact of being associated with such a new medium.

To date over 60 brands have purchased rich media campaigns across the iAd network - suggesting Apple has already generated at least $60 million from the product - but the company has been working to streamline the campaign process in order to attract more. For example, it launched an iAd Producer tool in December, which essentially allows agencies and brands to create their own ads in a drag and drop fashion.

Prior to the launch of that feature Apple was handling the production of creative units itself to maintain quality, it said. That situation caused friction between the company and some of its advertisers, however, with some brands reportedly canceling their campaigns following delays and disagreements between the parties.

The availability of that production tool places creative control back in the hands of agencies which, coupled with a reduced minimum investment, may well lead to increased advertiser interest surrounding the iAd product.

Tags:

ClickZ Live New York Want to learn more?
Attend ClickZ Live New York March 30 - April 1. With over 15 years' experience delivering industry-leading events, ClickZ Live brings together over 60 expert speakers to offer an action-packed, educationally-focused agenda covering all aspects of digital marketing. Register today!

ABOUT THE AUTHOR

Jack Marshall

Jack Marshall was a staff writer and stats editor for ClickZ News from 2007 until August 2011. 

COMMENTSCommenting policy

comments powered by Disqus

Get ClickZ Media newsletters delivered right to your inbox. Subscribe today!

COMMENTS

UPCOMING EVENTS

UPCOMING TRAINING

Featured White Papers

A Buyer's Guide to Affiliate Management Software

A Buyer's Guide to Affiliate Management Software
Manage your performance marketing with the right solution. Choose a platform that will mutually empower advertisers and media partners!

Google My Business Listings Demystified

Google My Business Listings Demystified
To help brands control how they appear online, Google has developed a new offering: Google My Business Locations. This whitepaper helps marketers understand how to use this powerful new tool.

Resources

Jobs

    • Website Optimizer - SEO, CRO, Analytics
      Website Optimizer - SEO, CRO, Analytics (Marcel Digital) - ChicagoMarcel Digital, an award winning interactive marketing agency established in 2003...
    • Director of Marketing
      Director of Marketing (Patron Technology) - New YorkDirector of Marketing We are seeking a Director of Marketing to manage and build our marketing...
    • Senior Interactive Producer
      Senior Interactive Producer (Ready Set Rocket) - New YorkWhat You'll Do As a member of our team, the Senior Producer reports directly to our...