When Will iAd be Cheap enough for Marketers?

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iAd, the mobile advertising platform for Apple products originally started out requiring a $1M advertising buy to use it. About a year ago, they cut the entry level to $500k. However, this past week the new iAd minimum advertising spend is now $100k. Still, that’s way too pricey for the average marketer to test.

According to AdAge, the cut that developers and publishers will receive is now increasing to 70%, from 60%. On top of that, the fees per click are being taken away, allowing for straight CPM advertising, with no click-fees.

Apple is facing an issue that despite all the initial hype, iAd hasn’t really caught on, partially because of the really high entry level.

According to paidContent.org

 Apple’s iAd allowed advertisers and brands to create compelling ad experiences with video and rich graphics, but the simpler quick-and-dirty in-ad formats favored by companies such as Google’s AdMob (coupled with the ability to spend limited amounts as advertisers experiment with mobile) has proven more compelling.

According to TheVerge.com

In what appears to be an indication that Apple realizes it has a problem with developer adoption as well, AdAge reports that the company will be bumping developers’ share of ad revenue to 70 percent, up from the 60 percent originally offered. It’s a two-pronged attack that comes after Apple’s share of the mobile display ad market dropped to 15 percent in 2011, according to IDC, with Google grabbing 24 percent. While Apple’s integrated ecosystem has served it well with media, music, and app sales, the same doesn’t seem to be the case in advertising — and with Google’s soaring smartphone marketshare stealing some of its leverage, Cupertino may need to play by the industry’s rules instead of the other way around.

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