Apple Slashes iAd Minimum Buy-In Fee Yet Again
Even the $300k level has apparently not been enough to keep existing advertisers on board and bring on new ones to meet the ever-growing number of ad slots available. In addition to the reduced minimum spend, Apple is increasing the cut that developers receive from iAds running within their apps from 60% to 70%. The extra money is expected to cover lower ad rates and encourage developers to include iAds within their applications.
Apple is also planning to change the way it charges for ads, which irked some advertisers and agencies. Since it launched in 2010, Apple has charged advertisers twice: a fixed rate for every 1,000 ad impressions plus an additional fee every time a user clicked on the ad. Apple will now only charge the cost-per-thousand rate.Apple recently hired former Adobe executive Todd Teresi to head up the iAds service after Andy Miller departed to join a venture capital firm.