Apple softens iAd approach to lure mobile advertisers

“Facing challenges winning over customers for its iAd mobile advertising service, Apple is softening its approach as it loses ground to Google Inc. in the fast-growing mobile-ad market,” Emily Steel and Jessica E. Vascellaro report for The Wall Street Journal. “But response so far has been tepid: Marketers say they have been turned off by iAd’s high price tag as well as Apple’s hard-charging sales tactics and its stringent control over the creative process.”

“Having originally asked marketers to commit to spend at least $1 million—an amount later dropped to $500,000—Apple is now discussing ad deals with a minimum commitment of just $400,000, according to a person familiar with the matter,” Steel and Vascellaro report. “Apple has also introduced more flexibility to a pricing structure that had befuddled advertisers, ad executives say. Instead of charging marketers every time a user taps on an ad—a policy which often led to ad budgets quickly being exhausted—Apple is willing to put a cap on what it charges for the taps, according to the person. Advertisers pay $10 every time an ad is viewed a thousand times and $2 every time it is tapped on.”

“Some marketers say they are pleased with the results of their iAd campaigns and are eager to renew deals. Unilever, which has bought 13 iAd campaigns for brands including Dove soap, and Ben & Jerry’s ice cream, said that consumers spent an ‘amazing’ level of time with the ads, on average 68 seconds in the U.S., across mobile devices,” Steel and Vascellaro report. “Apple is hoping to gain back ground that it has lost to Google in the mobile-ad market. Last year, Apple shared the top spot in the mobile display ad market with Google, with each company capturing 19%, according to research firm IDC. This year, Apple fell to the No. 3 spot, behind Google and independent mobile ad firm Millennial Media, capturing 15%, or $95 million, of the $630 million market, IDC says.”

Much more in the full article here.

[Thanks to MacDailyNews Reader “Edward Weber” for the heads up.]

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