My Comments on the below:
I am not surprised Apple have reduced the entry level for pricing and a sensible move. However, I still think they need to consider what kind of advertisers their product is suitable for and come up with a better pricing model. Their mixed cpm and cpc model is one that I cannot get to grips with, if it is still the same.
Posted Feb 23, 2011
Apple has halved its minimum spend for advertisers on its mobile advertising platform iAds from $1m to $500,000. The announcement comes as the first run of iAd campaigns ends and Apple looks to broaden its appeal to smaller-scale advertisers that originally couldn’t afford the platform. As Apple looks to revolutionise the way advertisers approach digital advertising, according to several reports, iAd’s fill rates – the percentage of ad inventory actually filled with an ad – declined significantly earlier this year.Though Apple claims more than 60 successful brand campaigns for iAds and a 100% renewal rate, developers have been quick to criticise and believe the platform has been slow to gain traction.
While $1m is a small sum for a big corporate advertisers such as Campbells, and much smaller than a national TV ad campaign would cost, it’s not the amount of money many advertisers are yet willing to spend online.
However, by lowering iAds’ million-dollar price hurdle, Apple hopes to reverse that trend, bringing more brands to the platform and an increasingly larger portion of their annual ad spend to Apple.