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Apple’s ad platform for mobile phones, iAd, has failed to take off among advertisers, so Apple is making some pretty big compromises to get advertisers on board.
The Wall Street Journal reports that iAd has fallen from a first-place tie with Google’s AdMob last year to the number three spot this year, falling behind Millennial Media’s ad network. It has dropped from 19% to 15% share.
So to try and claw some share back, Apple is reportedly making the following changes:
- Lowering the minimum buy to $400,000. It has already been lowered from $1 million to $500,000.
- Putting a cap on per-click payments. Apple currently charges advertisers $10 for every thousand times an ad is viewed (CPM) and an additional $2 every time a user taps the ad. The per-click payments quickly exhausted ad budgets, the Journal reports.
- Introducing a training program for advertisers in conjunction with OMD, Apple’s media buying agency.
So far, Apple has had no problem getting developers to sign up for iAd, but has had problems selling enough inventory to fill those spots. One developer, David Barnard of App Cubby, told the Journal that he’d only made $320 from iAd in the last month and that Apple was only able to fill 13% of his apps’ ad requests.
Article source: SAI http://feedproxy.google.com/~r/typepad/alleyinsider/silicon_alley_insider/~3/BPAEiEHhVL4/apples-mobile-ad-platform-is-tanking-so-apple-is-changing-the-terms-2011-12