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 Toronto On the heels of a fantastic event in New York City, ClickZ Live is taking the fun and learning to Toronto, June 23-25. With over 15 years' experience delivering industry-leading events, ClickZ Live offers 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

Featured White Papers

Gartner Magic Quadrant for Digital Commerce

Gartner Magic Quadrant for Digital Commerce
This Magic Quadrant examines leading digital commerce platforms that enable organizations to build digital commerce sites. These commerce platforms facilitate purchasing transactions over the Web, and support the creation and continuing development of an online relationship with a consumer.

Paid Search in the Mobile Era

Paid Search in the Mobile Era
Google reports that paid search ads are currently driving 40+ million calls per month. Cost per click is increasing, paid search budgets are growing, and mobile continues to dominate. It's time to revamp old search strategies, reimagine stale best practices, and add new layers data to your analytics.

Resources

Jobs

    • SEO Specialist
      SEO Specialist (HeBS Digital) - NEW YORK                             ...
    • GREAT Campaign Project Coordinator
      GREAT Campaign Project Coordinator (British Consulate-General, New York) - New YorkThe GREAT Britain Campaign is seeking an energetic and creative...
    • Paid Search Senior Account Manager
      Paid Search Senior Account Manager (Hanapin Marketing) - BloomingtonHanapin Marketing is hiring a strategic Paid Search Senior Account Manager...