Feeds

Apple slices iPhone and iPad ad rates 'by 70%'

Jobs bows to Google effect

Designing a Defense for Mobile Applications

Apple has sliced rates for its iAd mobile advertising platform by as much as 70 per cent as big name clients depart for rival ad platforms, according to a report citing two people with knowledge of the matter.

Bloomberg reports that the likes of Citigroup and JC Penney – which paid $1m or more to run campaigns on iAd when the platform launched – are no longer advertising on the platform, and that Apple is now offering campaigns for as little as $300,000.

Nonetheless, Bloomberg says, many advertising agencies are bypassing iAd in favor of platforms that reach more than just Jobsian hardware, including Google's AdMob, Millennial Media, and Greystripe.

Officially, the report says, Apple has cut the minimum iAd purchase from $1m to $500,000, but it’s offering deals for as little as $300,000 if agencies purchased multiple campaigns. Previously, AllThingsD reported that Apple had sliced the minimum to $500,000.

Apple did not respond to a request for comment. But that's because we didn't send one.

With iAd, Apple ventured into unfamiliar territory, intent on challenging the likes of Google with in-application ads spiced up with things like video. The platform was launched in July of last year, following Apple's purchase of mobile ad outfit Quattro Wireless. But it would appear that the platform doesn't exactly have the pull Apple expected it would. iAd serves ads only onto Apple devices, including the iPad and the iPhone.

According to Mobclix, a mobile ad exchange, application developers are seeing iAds fill only about five to 15 per cent of their available ad space. When an ad does run, developers get 60 per cent of the revenue. Apple told Bloomberg that it has launched over a hundred iAds campaigns in seven countries.

With the latest incarnation of its iOS mobile operating system, due later this year, Apple is offering WebGL hardware acceleration to iAd advertisers – without extending the tehnology to ad developers. So, Apple is not just cutting prices. It's offering advertisers perks that even developers can't get. ®

Using blade systems to cut costs and sharpen efficiencies

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.