The Wall Street Journal is reporting that Apple may be charging as much as $1 million for interested companies to place their ads on Apple’s forthcoming iAd mobile advertising network. Companies looking for ad spots at launch could be paying up to $10 million. Apple is making waves on Madison Avenue with its price tag, […]
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Apple Charging $1 Million for iAd Placements?

The Wall Street Journal is reporting that Apple may be charging as much as $1 million for interested companies to place their ads on Apple’s forthcoming iAd mobile advertising network. Companies looking for ad spots at launch could be paying up to $10 million.

Apple is making waves on Madison Avenue with its price tag, which comes with initial demands for greater control over advertisers’ marketing campaigns.

“It’s a hefty sum,” says Phuc Truong, managing director at Mobext, a mobile marketing business owned by Havas SA whose clients include Sears, Choice Hotels, Amtrak and Volvo. “What Apple is trying to do is certainly above and beyond what’s been done in the past.”

It appears that Apple, with this premium pricing, will be targeting large corporations for participation, and not small companies that are the typical advertisers on such mobile ad networks.

The report also claims that Apple will be charging 1 cent per add impression and $2 for ever ad view.

Apple is planning to charge advertisers a penny each time a consumer sees a banner ad, ad executives say. When a user taps on the banner and the ad pops up, Apple will charge $2. Under large ad buys, such as the $1 million package, costs would rack up to reach $1 million with the various views and taps.

It’s also worth pointing out that Apple plains to be building these Ads for the first few months. They do plan to eventually release an development kit to ad agencies to allow them to build their own ads and submit them to Apple for approval. Sound familiar?

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