February 23, 2011
When it debuted last year, Apple’s mobile advertising business, iAds, came with a high price tag. The minimum investment was $1 million, which was too high for many would-be buyers. Apple has now dropped that price substantially. According to All Things Digital in an exclusive report, Apple has dropped the minimum price it charges for iAds to $500,000. Since its debut, iAds has claimed 60 successful brand campaigns with a 100 percent renewal rate. However, the $1 million price tag has kept many advertisers away. Mark Read, CEO of WPP Digital, the digital arm of global ad giant WPP stated:
“This new minimum buy is a great step forward and a necessary one, I think. Lowering the minimum buy to $500,000 from $1 million will certainly make the platform more appealing.”For end users, the new minimum price should mean more iAds will be coming to iDevices. For Apple, it means more money.