If iTunes Radio is going to become a key component to Apple’s infrastructure lineup, the company is going to have to bring advertisers to the platform in force. AdWeek reports that in order to move the iAds sales team away from in-app ads, Apple is planning to “build a real-time bidding exchange to automate selling in-app ads.” According to the report, Apple’s head of software Eddy Cue is unwavering in his dedication to the growth of iTunes Radio, even if it means automating other services to free up the sales team.
In an effort to attract more advertisers and to compete with major players like Google, Apple has once again slashed the minimum spend required by campaigns on its iAd mobile advertising platform. The figure has now dropped to $100,000 according to a report from AdAge, just 10% of Apple’s original requirement. The Cupertino-based company initially required advertisers to spend a minimum of $1 million per campaign on its iAd platform, eventually cutting the price in half to $500,000 and then settling on $300,000. In addition to the reduced spending fee, Apple is looking to woo app developers by reducing the company’s cut of iAd profits from 40% to 30%. Apple has been losing share in the mobile ad market as Google continues to march forward. The search giant took in 24% of the $630 million in mobile ad revenue in the U.S. last year, up from 19%. Millennial Media placed second with 17% of the market and Apple was No.3 with a 15% share, down from 19% in 2010. More →
Apple has reportedly hired a former Adobe executive to run its iAd division, which was being led by Eddie Cue after Andy Miller left the company last year. Todd Teresi, former vice president of media solutions at Adobe, will now head Apple’s mobile ad unit according to Bloomberg’s Adam Santarino. Apple has seemingly struggled to gain traction with its iAd platform, and the Cupertino-based company has lowered its minimum spend twice since launching iAd in an effort to woo advertisers. The company initially required a minimum of $1 million be spent on each campaign, but the minimum spend now sits at $400,000. More →
Apple has reportedly confirmed to a developer that it is no longer serving advertisements tied to its iAd platform in iOS apps geared toward children. When Mike Zornek — developer of Dex, a free Pokemon app for the iPhone and iPod touch — noticed iAd ads were no longer being served in his app, he contacted iAd support. The purported reply he received from Apple reads as follows:
We periodically review the apps in the iAd Network to ensure that all apps receiving ads are aligned with the needs of our advertisers. Currently, our advertisers prefer that their advertising not appear in applications that are targeted for users that are young children, since their products are not targeted at that audience.
We appreciate your understanding.
iAd Network Support Apple, Inc. 1 Infinite Loop Cupertino, CA 95014
Apple’s iAd product hasn’t been the sweeping success many thought it would be when the company announced the product last year. Apple has since cut its minimum spend in half to $500,000, and it also tried to draw attention to the platform with a gallery of iAd ads packed into a dedicated iOS app. It now looks as though Apple is trying to add further appeal to its iAd product by delivering a network that is more targeted than several competitive networks might be. Of course developers like Zornek stand to suffer from the changes, and in typical Apple fashion, no notice was given to developers. “And that’s how an iAd supported version of Dex died,” Zornek wrote on his blog. “No warning, no notice and inevitably no respect to the developers who have cenetered [sic] their app’s revenue model around the iAd platform.” More →
iPhone developer Jason Ting has a hot app. He is the first to market with an application that will activate the iPhone 4’s built in LED camera flash, turning your smartphone into a flashlight. Now, while the flashlight application itself isn’t all that exciting (although it was downloaded over 9,000 times in one day) this next bit of news is. Ting boasts that he grossed just under $1,400 on 9,300 ad impressions with a 11.8% click-through rate. Fourteen hundred dollars in one day!? Yikes. The high click-through rate can partially be credited to iPhone users who were curious about the new iAds system; clicking through to see how the system worked. Whatever the reason, Ting has an extra $1,400 in his pocket. More →