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Wednesday, February 23, 2011

Apple Cuts Starting Price of iAds [REPORT]

Apple has cut the entry-level price of an iAd from $1 million to $500,000, according to a report.

The price cut is reportedly a done deal. “This new minimum buy is a great step forward and a necessary one, I think,” Mark Read, CEO of WPP Digital, told All Things D. “Lowering the minimum buy to $500,000 from $1 million will certainly make the platform more appealing.”

Apple rolled out iAd in April and charged advertisers a minimum of $1 million to use the platform. Since then, the demand for iAds hasn’t kept pace. According to the report, fill rates — the portion of advertising inventory being used — fell earlier this year.

In another move to broaden the availability of iAds, the company in December opened iAd development to third parties with iAd Producer, a tool available on Apple’s Developer Page.


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