Apples iAd platform holds lots of promise for advertisers, considering how much people use their iPads, iPhones and iPods. But buying into this game wont be cheap.
The company plans to charge each advertiser a minimum of $1 million when the platform rolls out in the next few month between five and 10 times what competing ad networks charge, according to the Wall Street Journal. And if they want to be included when iAd launches, they'll need to spend nearly $10 million on iAds.
That's a lot of scratch, and a sign that Apple sees its ad platform as more valuable than those of its competitors, possibly because owners of iPhone OS devices have already shown they are willing spend more than $3 a day to use a cellphone, or hundreds of dollars for computers that can only run software from the company store.
In return for building and controlling the iPhone OS ecosystem (iPad, iPhone, iPod Touch), Apple will collect 40 percent of this ad revenue, with 60 percent going to the developer of the app where the ads appear.
Once an advertiser has committed $1 million for a campaign, Apple will deduct a cent each time a user sees a banner ad within an app, and $2 when they tap on it to view a larger version of the ad, which can include interactive elements.
Initially, not even a commitment of $10 million will buy advertisers the right to design their own ads, according to the Journal. Only Apples designers will create these ads in the first few months, although the company plans eventually to offer a development kit that advertisers can use to design their own ads somewhat along the lines of the SDK that the app developers use to create their apps.
Apple spokeswoman Trudy Miller told us earlier this month that Apple will continue to allow competing ad platforms to sell ads within apps. However, its developer agreement bars those networks from collecting data from devices, giving iAd a competitive advantage.
The company plans to charge each advertiser a minimum of $1 million when the platform rolls out in the next few month between five and 10 times what competing ad networks charge, according to the Wall Street Journal. And if they want to be included when iAd launches, they'll need to spend nearly $10 million on iAds.
That's a lot of scratch, and a sign that Apple sees its ad platform as more valuable than those of its competitors, possibly because owners of iPhone OS devices have already shown they are willing spend more than $3 a day to use a cellphone, or hundreds of dollars for computers that can only run software from the company store.
In return for building and controlling the iPhone OS ecosystem (iPad, iPhone, iPod Touch), Apple will collect 40 percent of this ad revenue, with 60 percent going to the developer of the app where the ads appear.
Once an advertiser has committed $1 million for a campaign, Apple will deduct a cent each time a user sees a banner ad within an app, and $2 when they tap on it to view a larger version of the ad, which can include interactive elements.
Initially, not even a commitment of $10 million will buy advertisers the right to design their own ads, according to the Journal. Only Apples designers will create these ads in the first few months, although the company plans eventually to offer a development kit that advertisers can use to design their own ads somewhat along the lines of the SDK that the app developers use to create their apps.
Apple spokeswoman Trudy Miller told us earlier this month that Apple will continue to allow competing ad platforms to sell ads within apps. However, its developer agreement bars those networks from collecting data from devices, giving iAd a competitive advantage.
For more information contact All About Jazz.
