Christian Louca
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.
The fact that Apple can’t find enough advertisers to fill its iAd slots on the iPad and iPhone suggests the tech giant may believe it is competing against TV, rather than rival Google.
However, a recent study from Nielsen showed iAds were more effective for Campbell’s than TV ads in the US.
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.
