“Setting a high bar for its debut in the advertising business, Apple Inc. aims to charge close to $1 million for ads on its mobile devices this year and perhaps even more to be among the first, ad executives say,” Emily Steel reports for The Wall Street Journal.
“Apple is hitting the road to showcase its new mobile-device advertising capability, dubbed iAd, and has indicated it could charge as much as $10 million to be part of a handful of marketers at the launch, according to a person familiar with the matter,” Steel reports. “Ad executives say they are used to paying between $100,000 and $200,000 for similar mobile deals.”
“Earlier this month, Apple unveiled iAd, a software system to offer ads in the applications available in its App Store,” Steel reports. “[iAds] are likely to start appearing in applications on its iPhone and iPod touch devices in June, and its iPad later in the year, according to the person familiar with the matter.”
“Despite the high price, ad executives at agencies from Boston to New York and San Francisco to Los Angeles have crowded into conference rooms in recent weeks to listen to the tech company’s pitch for iAd,” Steel reports. “Discussions over possible deals are ongoing but several ad executives said they are beginning to prepare creative ideas for campaigns.”
“An Apple spokeswoman said the company will sell and serve the ads and declined further comment, except to reiterate that app developers will receive 60% of the revenue. Apple gets the other 40%,” Steel reports. “Apple on Wednesday said it has scheduled a developers’ conference for June 7-11, where it is expected to unveil its next iPhone. It would be up to developers whether they want to include ads in their apps, although the financial incentive is there.”
Full article here.