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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."
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.
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?
 

miketcool

macrumors 6502a
Jun 24, 2003
902
321
California
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...
 
Comment

Kabeyun

macrumors 68040
Mar 27, 2004
3,051
5,726
Eastern USA
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.
 
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MattSepeta

macrumors 65816
Jul 9, 2009
1,255
0
375th St. Y
lol

I'm going to click on every single interactive ad, and never buy a darn thing :D

That will show them! Wait, who is "them?"
 
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3583582

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

macrumors 68000
Sep 5, 2009
1,568
326
MN
Wow! Now, on our iphones and ipads, are we going to get inundated with ads? Of course......
 
Comment

spazzcat

macrumors 68030
Jun 29, 2007
2,828
1,691
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.
 
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RalfTheDog

macrumors 68000
Feb 23, 2010
1,537
348
Lagrange Point
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.
 
Comment

Full of Win

macrumors 68030
Nov 22, 2007
2,615
1
Ask Apple
These big fees will mean that payers will want something for their money; which will likely be more intrusive ads eventually.
 
Comment

miles01110

macrumors Core
Jul 24, 2006
19,261
31
The Ivory Tower (I'm not coming down)
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...

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.
 
Comment

furi0usbee

macrumors 68000
Jul 11, 2008
1,781
1,264
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.
 
Comment

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.
 
Comment

mkrishnan

Moderator emeritus
Jan 9, 2004
29,776
12
Grand Rapids, MI, USA
These big fees will mean that payers will want something for their money; which will likely be more intrusive ads eventually.

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...
 
Comment

miles01110

macrumors Core
Jul 24, 2006
19,261
31
The Ivory Tower (I'm not coming down)
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.

Did you even read the article? Seriously.

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.
 
Comment

spazzcat

macrumors 68030
Jun 29, 2007
2,828
1,691
Mix this with apple pretty much blocking out other ad companies is it gets pretty out of hand for pricing.

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.
 
Comment

Full of Win

macrumors 68030
Nov 22, 2007
2,615
1
Ask Apple
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...

Was it really infamous? Check dictionary.app.

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

furi0usbee

macrumors 68000
Jul 11, 2008
1,781
1,264
Did you even read the article? Seriously.

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.
 
Comment

chairguru22

macrumors 6502a
May 31, 2006
637
92
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.
 
Comment
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