Apple slashes iAd prices again to compete with Google’s AdMob


Apple has made further reductions to the costs of advertising on its iAd mobile advertising platform, down to just a tenth of its original asking price, following slow take up. Originally pegged at a million dollar minimum buy in, then discounted to $500,000, Apple has slashed the minimum buy to $100,000, increased developer revenue sharing to 70% and dropped costly cost-per-click.


The new pricing comes after Apple appointed former Adobe executive Todd Teresi to lead its iAd unit in 2012.

In addition to the slashing in prices, Apple is increasing the amount it pays mobile app developers.

App developers will now receive 70% of ad revenues from iAds running on their apps, rather than the 60% cut that they had.

The extra money will compensate for lower ad rates and will be an added plus for those wanting to build businesses on Apple devices.

Side by side, Apple has been losing its hold in the mobile-ad market, hurting the app developers' ability to make money from advertising.

While Google took 24% of the $630 million market for mobile display ads in the U.S. last year, up from 19% in 2010, according to research firm IDC, Apple's third with a 15% hold on the market.

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