Apple introduced iAds multimedia advertising on iOS devices to "keep standards up". It wanted to quality control the product.
iAds are those in-app ads that pop up if you tap them and burst into all-singing-all-dancing video or something interactive.
But it seems iAds aren't selling. When the platform was released in July 2010, Apple imposed a minimum spend of $1m. That was reduced to $500,000. And now, The Wall Street Journal reports it's dropped to $400,000.
(Via: BGR)Apple is rethinking how its pricing structure works, too. It will now put a cap on how much it charges advertisers every time a user taps on an advertisement. The Wall Street Journal explained that Apple currently charges $2 each time a user clicks an in-app advertisement and $10 every time the ad is viewed 1,000 times. Google, by contrast, charges between $4 and $12 each time an ad is viewed 1,000 times. Apple also reportedly plans to implement a mobile advertising training program for its employees and clients.These changes are no doubt an effort to regain lost advertising market share. According to data from research firm IDC, Apple’s mobile-ad market share dropped from 19% last year to 15% this year. The company now has a smaller market share both than Google and Millennial Media. IDC believes Apple will have a hard time competing with Google and Millennial because it only sells ads on Apple products.
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