Bloomberg is reporting that Apple has lowered their buy-in fee for their mobile advertising program called iAd, yet again. Prices have come down from the original $1 million price, and some are now selling as low as $300,000. The main reason for this cut, is advertisers are not staying with iAd, and are looking at […]
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Apple Lowers Price for iAd Buy-In Again, Facing Greater Competiton

iad-failed.pngBloomberg is reporting that Apple has lowered their buy-in fee for their mobile advertising program called iAd, yet again. Prices have come down from the original $1 million price, and some are now selling as low as $300,000. The main reason for this cut, is advertisers are not staying with iAd, and are looking at other rival ad agencies.

As you may remember, Apple reportedly dropped the buy-in price from $1 million to $500,000 earlier this year. Seemingly that price cut still wasn’t enough to keep Apple from bleeding advertisers, or to attract new ones. See, Apple has a huge, and growing number of slots to fill with more and more ad-supported apps being released every day on the App Store.

Apple also has another problem with iAd- developers are only seeing a fill rate in the range of 5-15%, which really isn’t bringing in that much money for developers. Plus, advertisers turning to Google’s AdMob service, or similar services offered by other advertising companies, all of which are cross-platform. That means a greater audience for developers. Apple’s iAd program is iOS-only.

So it seems iAd is still having trouble. This doesn’t surprise me considering that Apple has no expertise in this field. Even if they are hiring big names in advertising.

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