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Apple to Charge Up to $1 Million for iAd Placements?

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Apr 12, 2001
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The Wall Street Journal reports that Apple is reportedly looking to charge up to $1 million to companies interested in participating in the company's forthcoming iAd mobile advertising platform. Those companies looking to be launch partners could be looking at sums of up to $10 million.
Apple is making waves on Madison Avenue with its price tag, which comes with initial demands for greater control over advertisers' marketing campaigns.

"It's a hefty sum," says Phuc Truong, managing director at Mobext, a mobile marketing business owned by Havas SA whose clients include Sears, Choice Hotels, Amtrak and Volvo. "What Apple is trying to do is certainly above and beyond what's been done in the past."
Click to expand...
The rumored premium pricing agrees with previous comments made by ad agencies who have received pitches from Apple's iAd team, and confirms that Apple will be targeting major corporations for participation in the program rather than smaller entities frequently seen in mobile advertising in many apps on the iPhone today.

According to the report, Apple will be charging one cent per banner displayed and two dollars per interactive ad viewed.
Apple is planning to charge advertisers a penny each time a consumer sees a banner ad, ad executives say. When a user taps on the banner and the ad pops up, Apple will charge $2. Under large ad buys, such as the $1 million package, costs would rack up to reach $1 million with the various views and taps.
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The report also notes that Apple itself will build the ads over the first few months in order to ensure proper functioning and aesthetics. But Apple does have plans to release a developer kit that will permit ad agencies to create their own ads down the road and submit them to Apple for approval.

While some ad directors have expressed reluctance at giving up control of ad creation during the initial stages, it hasn't stopped a reported landslide of interest from agencies, who have participated in numerous pitch sessions from Apple's iAd team around the country and have begun gearing up with ideas for their campaigns.

Article Link: Apple to Charge Up to $1 Million for iAd Placements?
 
Article Link
https://www.macrumors.com/2010/04/29/apple-to-charge-up-to-1-million-for-iad-placements/
miketcool

miketcool

macrumors 6502a
Jun 24, 2003
924
366
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In 1984, Apple Computer dropped $1 million for their infamous superbowl ad. Amazing that they are now charging that amount to have ads on their devices. My have the tables turned...
 
Kabeyun

Kabeyun

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Mar 27, 2004
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Every time everyone complains about Apple's pricing policies, and every time everyone ends up making a mint. I'm confident this will be the same.
 
3

3583582

Suspended
Jan 6, 2009
163
0
Good. The AdMob and other ads totally suck right now, this should guarantee high quality ads. :)
 
J

jo0

macrumors regular
Nov 25, 2009
224
0
Seattle, WA
im not quite sure what to think on this one. its a totally new look at advertising and will completely disrupt google mobile and admobs advertising structure. go apple? yes, i think so..
 
rhinosrcool

rhinosrcool

macrumors 68000
Sep 5, 2009
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Wow! Now, on our iphones and ipads, are we going to get inundated with ads? Of course......
 
spazzcat

spazzcat

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Jun 29, 2007
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This may sound like a lot of money. But they are reaching millions of people with these ads. The good thing about this, we should see only high quality ads.
 
RalfTheDog

RalfTheDog

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Feb 23, 2010
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That puts things slightly out of my advertising budget. I would hope the One million dollar campaigns would last more than a day or two. I would also hope someone actually purchases a product after clicking at least once.

Also hoping one of my competitors makes a big buy and getting ready to click lots of their adds.
 
Full of Win

Full of Win

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Nov 22, 2007
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These big fees will mean that payers will want something for their money; which will likely be more intrusive ads eventually.
 
miles01110

miles01110

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Jul 24, 2006
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miketcool said:
In 1984, Apple Computer dropped $1 million for their infamous superbowl ad. Amazing that they are now charging that amount to have ads on their devices. My have the tables turned...
Click to expand...

Not really comparable for a couple of reasons. Inflation means that the ad actually cost around $2m in today's dollars, and the audience for the SB was a lot smaller then than it is now. Plus iAds are a pay-[Apple]-per-view system, which is completely different from the pricing structure television commercials use.
 
furi0usbee

furi0usbee

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Jul 11, 2008
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So this pretty much leaves out all those (smaller) developers who were clapping when Steve introduced iAds... unless they can pony up a cool million. This seems to be targeting the larger, corporate "evil" companies. $2 bucks for a view? If I don't like a company, I'll keep on viewing their ads just to hit them with a loss.
 
Rodimus Prime

Rodimus Prime

macrumors G4
Oct 9, 2006
10,136
4
Mix this with apple pretty much blocking out other ad companies is it gets pretty out of hand for pricing.
 
mkrishnan

mkrishnan

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Jan 9, 2004
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Grand Rapids, MI, USA
Full of Win said:
These big fees will mean that payers will want something for their money; which will likely be more intrusive ads eventually.
Click to expand...

This might end up being the case -- Apple has had some patents recently related to technologies to interrupt device functioning to make sure ads are seen, etc....

I'm hoping mostly it heralds an improvement in the quality of ads. The problem for me personally as a consumer continues to be a mismatch. When I buy an issue of GQ, I spend a good amount of time looking at the ads, because they're ads for things I want. On the web, most of the ads continue to function as if they have no bloody idea what I want, or worse are perversely trying to spam me about things they are almost certain I do not want.

I personally don't see the idea of "quality ads" as sarcasm. I have no problem with advertising, and I benefit from it, as long as it is meaningful to me...
 
miles01110

miles01110

macrumors Core
Jul 24, 2006
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36
The Ivory Tower (I'm not coming down)
furi0usbee said:
This seems to be targeting the larger, corporate "evil" companies. $2 bucks for a view? If I don't like a company, I'll keep on viewing their ads just to hit them with a loss.
Click to expand...

Did you even read the article? Seriously.

MacRumors said:
The rumored premium pricing agrees with previous comments made by ad agencies who have received pitches from Apple's iAd team, and confirms that Apple will be targeting major corporations for participation in the program rather than smaller entities frequently seen in mobile advertising in many apps on the iPhone today.
Click to expand...
 
spazzcat

spazzcat

macrumors 68040
Jun 29, 2007
3,715
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Rodimus Prime said:
Mix this with apple pretty much blocking out other ad companies is it gets pretty out of hand for pricing.
Click to expand...

Apple will not block other ad companies (Google). Developers can use anyone they want for their ads. But they are going to use who pays the best.
 
Full of Win

Full of Win

macrumors 68030
Nov 22, 2007
2,615
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Ask Apple
miketcool said:
In 1984, Apple Computer dropped $1 million for their infamous superbowl ad. Amazing that they are now charging that amount to have ads on their devices. My have the tables turned...
Click to expand...

Was it really infamous? Check dictionary.app.

The ad may be better described as memorable or notable, but not infamous.
 
furi0usbee

furi0usbee

macrumors 68000
Jul 11, 2008
1,790
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miles01110 said:
Did you even read the article? Seriously.
Click to expand...

Um, yeah... which is why I said it's targeting large companies. My concern, as I said, is for the smaller developer not getting exposure for their products, and have to take out a huge loan, or find investors just to place ads.
 
C

chairguru22

macrumors 6502a
May 31, 2006
661
154
PA
I DO NOT WANT ADS POPPING UP ON MY PHONE.

I'm highly interested in the iPhone 4G but if it will have ads then I will be sticking with my BB.
 
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